Transfer case / Transmission not working?

I engaged 4 hi on my truck listed above while driving, all went fine. I stopped and shifted into neutral and pressed the 4 lo button. It flashed for a bit and then went solid, but when I shifted into drive it flashed again and the buzzer sounded, and a thunk sound came from below the vehicle. I shifted back into neutral and attempted to disengage 4 lo, but it did not work. I shifted into park, and there was a short grinding sound from the transmission. When the car is started, the 4 lo button flashes as well as the indicator on the dashboard. 4wd is still engaged, I spun the rear driveshaft by hand and the front one moved as well. When shifted into drive, there is no response. None of the gears work, both drive and reverse are just neutral. The car rolls freely while in drive and reverse.