That's correct. In your settings you are scanning to a physical size of 1.32 x 0.82 inches with a dpi of 800. If you were to upsize so that you could make a print at 5 x 7 inches you are increasing the long side 5.3 times and the dpi will change to roughly 150 dpi. This will accentuate grain and give you a print with little fine detail. You should scan 35mm film for archival purposes at a resolution of at least 2400 and anywhere up to 4800 dpi.
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