what you'll need to do is put on the parking brake, put the transfer case in neutral, the transmission in park, use a jack to lift the front wheels off the ground and see if you can turn the front driveshaft freely by hand while the rear tires are still on the ground to prevent the rear driveshaft from turning. if you can turn the front driveshaft freely you should be ok to tow with the front wheels on the dolly. the rear output shaft should run the oil pump while the vehicle rolls. you need to check this because some transfer cases will lock the front and rear shafts together when in neutral selection which is fine for flat towing but means you cannot tow on a dolly.
i had to do this procedure on my 93 grand cherokee with the 242 transfer case. mostly tow it on a flatbed but have run it on the dolly a couple times with no issues.
my brother has a 98 gmc jimmy 4x4 with the 233C transfer case which does not have a neutral so he only tows it on a trailer.
John & Gina
2005 Winnebago Vectra 40AD Cummins ISL