On my 05 liberty The four-wheel-drive indicator light on the dash is off when I'm in 2wd it says I'm in full time when I'm in full-time says I'm in part time and so on it's off by one is there some type of sensor that needs to be replaced if so where is it located and does it do anything else except activate the light everything is working fine just the light out of sequence with the transfer case

Wow.
You need to insert some periods and commas because that was really hard to read and understand.

This is a common problem.
There is a switch on the transfer case that controls the indicator light. Replace that switch and all should be well again.
Do a search for transfer case indicator switch.

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U.S. Army Retired

Sorry using my iPhone and just talking into it appreciate The quick reply.

Right, the "switch" alters voltage based on how far it is depressed by the shift lever and the BCM uses this to determine what to light up on the dash. It may just need to be adjusted.

The service manual explains exactly how it works and what depths indicate which position

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2006 CRD - GTB2056 turbo by Dieselguy86, Eco Trans Tune, Lift Pump, Week's, HDS Tstat, Racor Filter, ARP's, OME 790's+Top Plate, JBA 2.5", JBA UCA, Moab's+265/75R16, ARB Bull Bar, 4.10's, TrueTracs