Could be the "resistor pack". In most cars, the blower switch selects the resistor(s) to put in series with the DC motor to set the speed. Since #2 position doesn't work, that suggests at least one resistor is blown. They may use the same resistors in different arrangements (series or parallel, just guessing) so a bad resistor might affect other switch positions.
The resistor pack is in the air flow somewhere on the air box. In my newer cars, behind the glovebox (fold plastic sides in to drop it down). In my 2002, it is actually a transistor circuit that serves the same purpose, but base models still used true resistors. The resistor pack doesn't usually die, but is murdered, so look for the real culprit like a clogged blower wheel.