Digital Range Sensor, it's the black box on the left side of the transmission that the shift cable hooks to and it tells the PCM what gear you have selected.
Dexron is a GM ATF, not Ford (although when the fluid was current you would normally find Dexron/Mercon dual usages). The E4OD's all required Mercon, which if a Ford ATF. Mercon is no longer licensed by Ford and only Mercon V is available. However you can still get Mercon spec'd fluid but it'll say something like for older transmissions.
You can use MerconV if you want so long as the transmission is in good shape. MerconV is more heavily friction modified than Mercon.