Seems like you'r stuck in 4WD low range.Was the vehicle in 4WD high range before you pulled the red lever back.?If so it seems the yellow button has not popped up.,thus preventig you from selecting high range 2WD.Take the floor panel up and try the old kettle of hot water trick on the front of the selector rod housing .You'll also see the yellow button
mechanism and the locking pin.The only possible causes I can think of are:1)Selector rod spring broken .( Yellow button job. )
2)Selector shaft sticking in bores
3)Selector shaft spring broken
If the yellow button is stuck down try and release it .Its difficult to say exactly what without seeing it,but I do beleive a bit a cleanup and lubrication and check the locking pin operation and lf nothing is broken it should be okay.Hope this has been of some use,as it's what I did when I had the same problem and that was years ago.