I never received anything like that from them. Make sure it's not spam. NEVER click on a link in an e-mail like this.
They basically need to verify that you are legitimate. I would log into your paypal account, and the same message should appear. If it does, provide them the requested information. If it does not appear in your account, the email is spam and you don't need to do anything. Paypal does send emails like this when an account is restricted or when they need additional information, but the same information request will appear in your account as well.
did you get your account limited? did you login into your paypal account using the paypal link? first login to your account using www.PayPal.com and check whether your account is limited or not.... if its not limited then its a fake phishing email sent to you to steal your paypal account.... phishing is like fishing... sometime people do fall in the trap and sometime dont.... so never click any link on email.... always open a new web broweser and type the link or add to favorite....