PAE means Physical Address Extension..If you have a 32-bit OS in linux, you have this option, to install a PAE kernel to address more than the 32-bit OS memory boundary (3Gb)...In 64bit arquitecture, you do not have that problem...So if you have a 32bit processor and want to address more than 3Gb boundary, yes you need a kernel to do so.
If you have a 64Bit processor, use a 64bit distro and solve the memory boudary issue.
There are other Kernels who will do the same thing, but in BT5 the PAE is the one used according to wiki...


