Hello there, Hopeless.
It sounds like you are unable to select the desired resolution on your external display when running OS X Mountain Lion. The following Knowledge Base article offer some great recommendations for troubleshooting:
OS X: How to use multiple displays with your Mac in Mountain Lion and earlier
Additionally there is a great tidbit of information in this article as well that you might find useful:
Using a Retina display
You can see more resolution options for your external display by holding down the Option key while clicking the Scaled button.
If you're using OS X v10.7 Lion or OS X v10.8 Mountain Lion, this is only available in extended desktop mode.
Thanks for reaching out to Apple Support Communities.
Cheers.