Don't panic! HPV is part of the same family of viruses that cause warts .... so not a particularly evil virus in the general scheme of things. However, research has shown that high risk strains of HPV are present in most women who develop cervical cancer, hence they take an interest when you have mild changes, but HPV is present - this is because the HPV has likely caused the changes. Having high risk HPV does NOT mean you're going to get cancer.
Since you have low grade dyskariosis, which sometimes sorts itself out, you'll probably be invited for another smear test in a year's time. If it has got worse by then and not gone away of its own accord, they will treat it. The treatment is 95% successful for removing the changed cells and kick starting your body to fight off the HPV too.
Giving up smoking is undoubtedly worthwhile though, as it is a known risk factor for CC.