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wordpress knowledge base theme - The MEDIA SETTINGS sub-panel is where you define options for displaying various media, mainly images, that exist through the MEDIA PANEL inside the upper NAVIGATION bar.

WordPress has produced-in image reduction. It automatically creates approximately three images of numerous sizes, (thumbnail, medium and huge) based on the dimensions in this particular sub-panel and WordPress also saves the original image, so you can have a total of four image sizes saved for each image you upload.