No it will not reset the Group Policies...that would be bad. Each policy is is linked to your domain by name and this will go in there and fix the problem because you have a new domain name.
Here is the info from that article on GPFIXUP:
When the DNS name of a domain changes, any references to Group Policy Objects (GPOs) within the renamed domain through Group Policy links (the gpLink attribute) on sites, domains, and organizational units is rendered invalid because they are based on the old domain name. Furthermore, the optional attribute gpcFileSysPath on a GPO that holds a uniform naming convention (UNC) path to a Group Policy templates folder located in the sysvol volume of the renamed domain will also be rendered invalid because the path uses the old domain DNS name. To correct the severed Group Policy links and the invalid UNC paths in GPOs within the renamed domain, you can use the Group Policy fix-up tool gpfixup.exe to refresh the Group Policy links and the UNC paths in GPOs based on the new domain name.
The Group Policy fix-up tool should be run once for every renamed domain soon after the actual domain rename operation has been completed and before another domain rename operation is performed.
The fix-up tool gpfixup refreshes all intradomain GPO references/links (that is, where the link and the target GPO are within the same domain) in the renamed domain. However, cross-domain references to GPOs in the renamed domain, where the link is in a different domain from the domain containing the GPO, will not be automatically rebuilt by this tool. For them to work, these cross-domain links will need to be repaired manually by deleting the old Group Policy links and re-establishing new links.