Is there a reason you keep the dog outside? GSD pups can get into a world of trouble left outdoors unattended if not secured in a proper kennel. A GSD needs much more stimulation than an hour of play a day and then left alone outside the rest... take obedience classes with the dog, work with him a lot. Keep him inside with you, that's ideal (there is a whole other debate on whether they can be outdoor dogs, and it can be done, but this is definitely not the way to do it)... build a bond with him. Keep him stimulated mentally, and exercise him. These are dogs who will find ways to entertain themselves if left alone too much, and it usually isn't pretty and is frequently dangerous to the dog (eating things, escaping, etc).
I'm sort of confused by your question on whether he'll go potty inside? Pups require potty training....they don't learn on their own. Use the process as an opportunity to build a bond with him. If he jumps, work on obedience. Frequent obedience work is key with these dogs-- they don't learn it on their own, and a household with no rules or boundaries is the perfect recipe for a poorly socialized, potentially aggressive or destructive dog.
It sounds like you did not do your research before getting this breed, but I commend you for starting now! Your pup wants to be around you, wants to build a bond with you. I definitely recommend puppy classes (you have to start with the basics, including potty training), engagement games, etc. GSD's are a LOT of work and definitely not a hands-off breed, but the loyalty that comes with the bond you will form through that work is what makes this breed so spectacular to own.