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Core i5 is a Dual Core processor line. It is Intel's mid-range processor series. It has many of the same features as the i7s including: Hyper Threading, Enhanced Intel Speed Step, and Turbo Boost. In addition to these features many Core i5s also include an integrated graphics processor on the die.
For the most part, you'll get faster CPU performance from the Core i5 parts over Core i3. Some Core i5 processors are dual-core and some are quad-core. Most of the time, a true quad-core CPU will perform better than a dual-core processor, especially on multimedia tasks like video transcoding or photo editing. All Core i3 processor are dual core. Occasionally, you'll find an older Ivy Bridge processor like the Intel Core i3-3130M in a system that's the same price as system with a newer Haswell CPU like the Intel Core i3-4012Y.