I have a 1997 Dodge Dakota with the 3.9 at speeds of 55 to 65 the rpm are running at 3400 some times up to 3800. Is this to high or is it ok. When I back off the gas it slows down fast like I have the bracks on or something.

That is too high. I don't know if the '97 Dakota has an O/D on/off button or not but it should be more like 2400..to 2800..somewhere in there at, say, 60mph. Assuming automatic. First thing to do is check fluid level, then if it's where it should be the Dakota does have a shift solenoid. Click on the image

I know it says 4WD but it's the same transmission

It is a transfer case problem