Depends mostly on what you're looking to do. If you plan to keep it on the road with a lot of highway driving then I'd go 4.56. If it's turning into a daily driver/off roader then I'd go with 4.88 or even 5.13 depending on how much time you plan to spend off the road.
Yes, you must do both the front and rear if you want to be able to use your 4WD.
Figure around $600 for parts (both axles) and another $500-600 or so for the labor to install them.
With a 4.0L & 35s, 4.88 is the gear you'll want (and is the deepest available for your year front axle).
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