Ooops, I GOT to learn to read! But yes, the TOD/Transfer case (all in one) uses Dexron III as well - but it only takes 2 qts of fluid in a change. You cannot change any of our fluids too much - you prob ought to be doing your front and rear diffs now as well - synthetic makes a difference there as well - see you manual for quantities and fluid weights for your geographic area.
Dealers - just what is it they do besides spread misinformation and botch repairs?