I use to tow my race car all over the country with my 89 STX Ranger 4WD Supercab with 5 spd manual. The total for the trailer was around 3,500 lbs and additionally I carried about 800 lbs on the bed. I ran 31" tires with 4.10 gears. I installed AAL springs and helper air springs to keep the rear from sagging. The trailer was enclosed but was low profile to reduce wind resistance.
I did it many years and it was very doable but the engine sure did have to work hard. I had to shift down to 3rd and run it at around 4,000 rpm or more on moderate grades and even down to 2nd on steeper grades. It would tow well at up to 72 mph in 4th gear on level road but higher speed was risking trailer whip. I tried 5th gear once on a level stretch for less than one hour. I almost melted the transmission but, fortunately, I had to make a pit stop and discovered the overheating transmission before any serious damaged occurred. I did have the Mitsubishi transmission.
I did this carefully for a couple years without trailer brakes. Once I got trailer brakes, I could not believe attempted it without trailer brakes.
I now do it with my 2002 4.0 SOHC Ranger with everything else being nearly the same as my STX. It is so much easier to tow with it and I usually get close to 1 mpg better gas mileage than I did with the 2.9L. I don't have to shift down nearly as much on upgrades either. I still don't use 5th gear, EVER, when towing.
So, you can tow 3,500 lbs and even a little more with the 2.9L engine but you and the engine will have to work at it. Try not to stop on upgrades, it is very hard on the clutch to get going again.