The smog test does not test the muffler of your Jeep and you will not fail
 for having a hole in it, but we don't recommend you take your car in for
 smog testing if the hole is large because... it may dilute your Jeep's
 exhaust to the point the smog machine will not allow the  smog technician to
 even begin the smog check.
 
 
 If your Jeep's muffler is intact but has hole/s consider this: Smog machines
 are calibrated in California (every three days) and are designed not to
 allow the testing of vehicles which emit oxygen levels exceeding the smog
 machines preset limits. If the holes on a muffler were large enough to where
 fresh air would be vacuumed into a car's exhaust stream, the test results
 would be incorrect, and the smog machine may not even allow the smog
 inspection to
 begin or continue. Worst case scenario would be the smog test begins, and is
 aborted halfway. You'd be required to pay the smog inspection fee, without
 getting smog check results or a smog check certificate. We have to recommend
 you get the muffler replaced before the smog test.