I believe my 84 126 is 1.1 or 1.2 quarts to fill. I don't have my FSM on me but I believe yours is 1.2 quarts. So yes, 2 quarts is what you need.
I use Mobil 1 Synthetic 75w-90. As always it is up to personal preference if you use synthetic or not.
I also remember hearing that if you switch to M1 syn, you should do another change 1 year later because it really cleans things out.
One note- When you do the change make sure you remove the upper bolt first, then the bottom one. You don't want to drain it and have no way to fill it.
Have fun!
