Browsers/Mail :: Emailing Resized Digital Images In Windows 8.1

When I access the dialog box headed "Attach Files" and choose the wording "Smaller 640 x 480", I then click on ATTACH at the foot of the box.

When I go back to the gmail page and choose the resized picture to send as an attachment, the size shown is an enormous size. Why not the reduced size?

I understand that Windows automatically resizes the picture to be sent in an attachment. So why does the picture not appear in its reduced size but in its original size on the gmail page? Is this normal? Will the picture be transmitted in its reduced size or in its original size?