After you send the money £200 through money gram a receipt will be given to you at the money gram office.
So you will scan the money gram receipt and address it to a mail then reply to paypal confirmation email with it.
Once you do that then PayPal verify the money gram detail and confirm everything valid then they will release your total amount into your account include the money gram charges.
Ahaa..Right now am very confused,because paypal have already deduct it from my account and demand you make the refund first due to some security reason.