What is WRRP1 and WRRP2 is that the group name?
Sorry, was just a typo, it should say VRRP1 and VRRP2 instead! There is no name for a standby/VRRP group, you use a number (VRID) instead.
Where do I need to define this? On both device? and also on a particular interface?
Yes, on both devices and for the interfaces which connect both routers to the LAN or VLAN of interest.
You mean I need to manually set this to DHCP server? Doesn't have some kind of auto load balancing?
For optimal balancing you somehow have to configure one half of your clients in the corresponding LAN/VLAN to use IP3, and the other half to use IP4 as their default gateway. Most predictable is a manual configuration.
The solution described above corresponds to a situation where you only have a single LAN/VLAN, VRRP is configured for.
If you have several VLANs you could also achieve a loadbalancing by configuring only a single virtual/logical router and corresponding VRRP/standby group per VLAN. For half the virtual routers you would define VRRP1 to be active (called "Master" with VRRP) and VRRP2 to be standby, and for the other half you would define it the other way round. In this case all clients in a given VLAN use the same default gateway (the IP address of the single virtual/logical router defined for that VLAN).