Now that you are in the Reset settings, you can choose from several different options.
If you are giving your iPad to a family member who is going to use the same iTunes account, you might want to choose the first option: Reset All Settings. This will leave the data (music, movies, contacts, etc.) but reset the preferences.
But most people will want to choose Erase All Content and Settings. This protects you by making sure all data is off the iPad, which includes information for your iTunes account. If you are selling the iPad on craigslist, eBay, or to a friend or family member who will be using a different iTunes account, choose to erase all content and settings.