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If the vehicle is on a lift with no friction against the wheels, egaging 4WD *WILL* work and all 4 wheels should spin.
If one front hub isn't working, you get RWD; Both hubs need to lock or the front differential will just spin (Ford stock isn't a locking diff)
There's a really easy way to test if the front hubs are locking. With the transfer case in 2WD high and the vehicle on ther ground, spin the front driveshaft clockwise. The hubs should lock and the driveshaft should stop spinning. If the driveshaft spins or you hear a click and the driveshaft still spins but has more resistance you have a problem with one or both of your front hubs not locking.