Will scale the image content,  and also make the canvas size either smaller or bigger. The difference between Scale Image and Set Canvas Size. Is that Set Canvas Size will enable you to have a smaller or bigger canvas with out scaling the image content (i.e it will only add some space around the image or clip the image). NOTE: Scale Image will scale the whole image you can scale only the currently active layer with the Scale Layer command.

You will set the new image size either by altering the size or the ratio. You can also set resolution of the image. If you lower the resolution the image will get bigger (in real units not in pixels). You therefore have to compensate it with a smaller pixels size if you still want the same image size but a lower resolution. It will naturally be vice versa if you increase the resolution. This is why you have a Pixel Dimension area (even if you can use e.g mm in that section too).

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