With a 2" suspension lift, the largest tire you can run without rubbing is a 32x11.50. But you'll need aftermarket wheels to position that wide of a tire out a tad further so its inside sidewalls won't rub.
It is possible you may get a minor amount of drivetrain vibration even with just a 2" suspension lift, which you can't just "live with" if it happens. But no worries, that is easily cured by dropping the t-case a half-inch with washers between the t-case skidplate and frame. With your '97, the OE t-case bolts are long enough to allow that 1/2" drop without longer bolts. Newer TJs can't do that without using longer bolts.
And technically, it is the transmission that is mounted to/supported by the t-case skidplate. The t-case itself doesn't actually touch the skidplate.