Currently Being ModeratedJan 8, 2013 4:25 AM (in response to al145)
A reset will not apply the new software. Only a restore from iTunes, or the over the air Software Update will put you at the newest version.
Currently Being ModeratedJan 8, 2013 4:39 AM (in response to al145)
A reset has nothing to do with the software. Reset is holding down the sleep and home keys, past when you see the red power down slider and until you see the silver apple and letting it reboot. It's nothing but a general refresh for the device. The iPad eqivalent of 'control/alt/delete' to get out of a glitch.
It's useful if an app hangs or glitches. It doesn't touch the content or software at all.
Currently Being ModeratedJan 8, 2013 5:08 AM (in response to Skydiver119)
Presumably the OP is talking about Settings -> General -> Reset and one of the options there, e.g., Reset all settings, Erase all content and settings, etc.
These will not change the iOS level.