Ice pellets occur when snowflakes melt into raindrops as they pass through a thin layer of warmer air. The raindrops then refreeze into particles of ice when they fall into a layer of sub-freezing air near the surface of the earth. Notice that this is the same type of situation that produces freezing rain. Freezing rain occurs when raindrops fall into subfreezing air that is so shallow the raindrops do not have time to refreeze into ice until they make contact with the ground. Sleet occurs when raindrops fall into subfreezing air thick enough that the raindrops refreeze into ice before hitting the ground.
Sleet is different from hail.
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