This is a formality. Paperwork basically. But the Pacers, as we knew they would, have exercised their option to retain Paul George for the 2013-14 season.
Upon entering the NBA, all first-round draft picks receive a guaranteed contract for their first two seasons. The team also gets options to retain them for the subsequent third and fourth seasons, which is something teams always do with even middling players, let alone a starter and potential future All-Star like George. In fact, the only real reason the third and fourth years aren’t just guaranteed is in case the player is such a bust that the team doesn’t even want to keep/pay them that long.
The Pacers’ actual conversation about retaining Paul George for the long term will likely begin formally next summer, when the front office tries to assess his value and lock him up for four or five more years, as they did with Danny Granger right before the start of his fourth season.