Answer:
If you were sent into exile, you would not expect to be living in the same country because exile means being forced to leave your own country or homeland, usually as a punishment or due to political reasons. So, being exiled means you would have to go and live in a foreign country or place.
Lon is not facing banishment because banishment refers to being forced to leave a place or country as a punishment for a crime or other offense. In Lon's case, he is being sent to a penitentiary, which is a prison, within the same state where he was caught.
Yes, Lon should expect to be freed from prison if he is being granted a pardon. A pardon is an official forgiveness for a crime that removes the punishment or sentence given for the crime. So, if Lon is being pardoned, it means that he will be freed from prison and will not have to serve the remainder of his sentence.