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Afaik, that only changes compression ratio, not resolution.
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Changing resolution can be a complex process that may not attain desired results. A 300x300px image at 300ppi will be one inch across in a Paperwhite 3+ but will (without device intervention) take up the entire screen of a 150ppi tablet. What seems to happen is that many devices re-interpret image resolution to best fit the screen.
I am quite happy with altering file size (compression) or pixel dimensions when necessary. These are things Calibre can do, even tho as separate tools in the user interface.