This is the 1487th most frequent Korean word.
한다
"한다" means "does" or "do" (declarative form in present tense).
In this sentence, '한다' is used to indicate the act of doing or engaging in a habitual activity, which is exercising in this context.
그는 매일 운동을 한다.
He exercises every day.
Here, '한다고' is a quoted form of '한다', reflecting the act of making a decision as reported speech.
그녀는 어제 결정을 한다고 말했다.
She said yesterday that she would make a decision.
In this case, '한다' denotes participation in an activity or game with others.