In a bread machine pan, place 1 cup water and next 3 ingredients in order suggested by manufacturer. Select dough setting. Check dough after 5 minutes of mixing; add 1 to 2 tablespoons water or flour if needed.
When cycle is completed, turn dough onto a lightly floured surface. Divide dough into 8 balls. Roll each into a 20-in. rope; form into pretzel shape.
Preheat oven to 425°. In a large saucepan, bring 2 quarts water and the baking soda to a boil. Drop pretzels into boiling water, 2 at a time; boil for 10-15 seconds. Remove with a slotted spoon; drain on paper towels.
Place pretzels on greased baking sheets. Bake until golden brown, 8-10 minutes. Spritz or lightly brush with water. Sprinkle with salt.