The Jeep in the ad appears to be a nicely restored Laredo. There's nothing in the picture that would indicate the engine is not the original 258, as stated in the ad, but checking the casting numbers would confirm.
If its the original engine, it's probably getting a little tired at 129K miles, especially since it's been pushing less than desirable 2:73 gears with larger than stock tires.
Overall, I think the price is about right, if the engine is still good. I'd demand a compression test before I bought it at that price.