The first thing to realise is that modelling for Stranded II isn't modelling for a game. It's modelling for the file formats that the game can read. As far as I am aware, Stranded II handles .B3D natively as its preferred format, but can also support .3DS (I can verify) and .X (unverified) files so any 3D modelling suite that can export to one or more of these formats will be suitable.
As with most types of applications, you're spoiled for choice between commercial, freeware and open-source. Commercial software tends to be more inclusive of features (such as animation support and other advanced features) being that you can be forking out over $1000 for some of these, Freeware software usually relates to a smaller scale application that is being developed by a singe programmer or a small team for more personal educational purposes than designing something with the end user in mind. Open-source software is usually worked on by a larger developer base, meaning its more likely to be packed with advanced functions, but they generally work in a modular manner.
My personal software comparison:
I hope this give some insight into the commonly used tools and please keep in mind, this is just MY opinion of these tools. Try them for yourself and see what sits well with you.