Image Quality setting

Does anyone understand what this does? Does it do something in itself or it just controls the other settings? It would be nice if each setting had an explanation.

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I don’t know what it exactly does, but setting it from low to medium changed graphical quality of game from awful to good enough for me. It seems to be the most important setting for graphical quality.

I get the same fps for medium as well as high image quality. I don’t even know what is going on with this game. It’s like there’s only two settings - low, and anything above that.