The redirection effect will only be created if both creatures are legal targets when the Chant goes to resolve. Since the Elephant is not a legal target, the redirection effect will not be created, so damage will be dealt like normal (3 damage to the Wolf, 2 damage to the Elephant).
If the Chant has already resolved, then the Elephant gained protection, then the damage would be redirected (although to prevent the damage to the Elephant, you would have to choose the color of the Elephant token, not the color of the Chant).
EDIT: Fixed token name in second paragraph.
Nathan Long
Wizards.Com Boards NetRep
Edited Nathan Long (June 23, 2014 02:36:29 PM)