Will a 94 ford ranger Transfer case work on a 96 Ford Ranger. They are both 4x4 and 4.0l and they both have a Manuel Transmission. Will the 94 fit the 96?

Yes. Any transfer case between the years of '93-'97 will fit your truck as long as thye both have the 4.0 and a manual. Without the manual all you will need would be an adapter plate, but you won't need that.

Yes, even though there were cosmetic changes, the chassis and drive trains are still the same. As long as it's the same transmission you will not have any problems.