The No. 10 Hoosiers upset the No. 3 North Carolina team by nine points.
The Hoosiers hold an 8-6 advantage and are 2-1 against the Tar Heels in the Big Ten/ACC Challenge.
This is the Hoosiers' highest ranking since they were third in the next-to-last poll of 2012-13.
Zeller was a stand out at IU before entering the NBA draft after his sophomore year.
Assembly Hall's dedication is planned for homecoming weekend on October 14.
Indiana University has ranked in the top ten in attendance for 38 of the last 44 seasons.
Gov. Mike Pence appointed the captain of IU's undefeated 1976 NCAA championship team to a three-year term on the board overseeing the university.
Trump has previously mentioned his desire for a Knight endorsement.
Center Thomas Bryant announced he will be returning to Indiana for his sophomore season next fall.
This is Indiana's fifth appearance in the tournament, and the first since 2002. Saturday's win marked the first tournament victory since 1983.