2-Wheel Drive
WARNING: This page is about a different car, the 2002 Ford Ranger. However, it is still accessible from the selected car via links, so may be relevant.
When 2WD is selected, the range sleeve at the center of the front planet slides forward, putting the transfer case into the high speed range (direct drive). The input shaft and the rear output shaft are locked together. This results in direct drive, straight through to the rear driveshaft. In addition, the 4-wheel drive mode sleeve is disengaged so none of the 4-wheel drive components turn.