Open Up Your Terminal
Install i8xx,i9xx display driver
In order to use higher resolution install updated Intel i8xx, i9xx display driver. It is provided by a package called xserver-xorg-video-intel. This package provides the driver for the Intel i8xx and i9xx family of chipsets, including i810, i815, i830, i845, i855, i865, i915, and i945 series chips.
sudo apt-get install xserver-xorg-video-intel
When this is finished reboot your system
Now you need to go to System>Preferences>Screen Resolution to see all of the new options.