Many roads are asphalted, and those that aren't will usually have been graded at least once a season. There are stretches of rta 40, for example, that can get slippery when wet, with occasional deep puddles and soft patches. A carefully driven 2wd will cope with a bit of "spirited driving" in bad conditions, but given the fact that 4wds are generally tougher built and have more clearance as standard, that might be a better bet, if only to give you more confidence (Toyota Rav 4 or Suzuki/Chevvy vitara perfectly adequate at the smaller end of the scale). (A 2cv or Renault 4 would be just as good though I expect!) If you're in a 2wd, take 2 spare tyres as they're usually not as tough as 4wd and sharp stones and gravel tracks not their natural environment.
If you're on a tight budget, I would choose a well maintained 2wd over an old unreliable 4wd unless you like a challenge and like looking at the (admittedly generally stunning) scenery!
Above all, enjoy the trip and don't obsess too much about the car as long as it's reliable.
Travel safe,
Simon.
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