The buttons are NOT a four wheel drive system. H3s are always in AWD/4X4. They are Transfer Case Control buttons.
Did you recently get your H3 in deep water, like maybe stuck in deep water for a bit? If so, you may have fried your Transfer Case Actuator (T Case Actuator) or shorted its connections.
You should get under it and look around to acquaint yourself with the T Case Actuator bolter to the Transfer Case and its wiring Harness. Inspect the Harness for compromise by frayed wire(s), rubbing, broken insulation or bad connector. When you do get under it, bring a can of CRC Electronics Cleaner with you (this should be standard equipment for anyone with an OLD vehicle). Disconnect the T Case Actuator Harness Connector, spry both sides with the CRC Cleaner, let dry and firmly reconnect. See what that does.
The simpler possibility is that somebody spilled sticky chit on the T Case buttons and they are stuck. With the truck OFF, spray those with the CRC and wipe clean seeing if they each move freely. Start the 3 and again, see if that helped.
There are many, many reasons for the T=Traction Failed message in the DIC, but the above is an easy start.