HI Wyndell
The seller has an agreement to pay the listing agent. you don’t
your option will not release the seller from their obligation to pay the agent.. unfortunately
so maybe they need to have a talk with the agent to greatly reduce their commission ( since they did not sell the house), or to step away so you can get the job done
there is nothing preventing you from exercising your option and doing what you want to do with the property but the seller’s need to understand that they still have an agreement with the agent and will be responsible for paying them unless they take fast action.