Just go with the 3", there are lots of us running it and I have yet to hear of anyone having any kind of problems with it. I originally went with the 2" and really regret it. I basically wasted $90 on the 2" kit. You have to have front bumper brackets made with the 2", but they come with the 3" along with everything you need, including the steering extention. The 3" is not hard to install at all and you have to do the same things as with the 2", so why not just jack the Explorer up an extra inch? You may have to reuse some of the stock bolts with the 3" lift, or buy a couple replacement ones, but that is no big deal.
Performance Accessories produces two kits, one for 95-97's and one for 98-01's. The main difference with these kits is the steering extension and bumper brackets. The 98-01 kit will work on ALL 95-01 Explorers with the exception of the steering extension on 95-97's. Here's the catch, you need the steering extension from the 95-97 kit for 95-97's, but the 95-97 kit does not have the correct bumper lift brackets so after a few hit and misses we found it easier to order the 98-01 kit and then specify that you need the 95-97 extension. When purchasing your body-lift kit, order the 98-00 kit #883. If you have a 95-97, make sure you exchange the 98-00 steering extension for the 95-97 extension. The extensions are very different and cannot be interchanged so make sure you specify which one you need.