Both i3 and i5 are dual core CPUs. The primary differences that the i5 have are:
Turbo Boost - An automatic overclock allowing the CPU to run at higher speed as long as the temperature is not too high. If both cores are being used then the maximum clock speed is lower than if only one core is used.
Hyper Threading (HT) - These are more or less virtual CPU cores. There are some programs use them, but games do not use HT. Certain video encoding programs and 3D rendering programs can make of HT and can provide a 10% - 40% increase in performance depending on how well the programs have been designed to take advantage of HT.
My i5-2410m has a standard clockspeed of 2.3GHz. With Turbo Boost it can reach 2.9GHz when only one...