moh22or :
can i upgrade to higher processor like i7 third or forth generation?
No, you can't (there are a couple of 3rd gen CPUs that use the same socket, but your chipset is not compatible with them).
The i7 would give you a noticeable bump in performance, but it still uses Intel HD Graphics 3000. You're stuck with that as long as you're stuck with 2nd gen hardware.
If it's worth $180 - $200 to you, go for it. You might be able to sell your i3 afterwards for about $80 to make up some of that money, even.