It depends on what you want to do with this computer and it depends on what your expectations are.
That i3 does appear to have HT, so you do have 4 threads. Upgrading to the i5 is 4 cores, but no hyper threading, so you still have 4 threads, but multi-core performance is higher than the i3. The i5 is faster, but not by much and only really pulls away when actual multi-threaded performance is needed. If you're getting otherwise smooth frame rates with hitches, I'm thinking the i5 might just smooth it out here and there.
I think it boils down to how much you value $50 and how long you intend on using that computer. If I had an Alpha (I wanted one but never pulled the trigger.) it'd continue to see use as a Plex/Mame machine for the foreseeable future and would drop an i5 in it.
If this were my daily driver? You can get a rather nice 4core/8 thread CPU for under $100 nowadays. Save up and pair it with a cheap motherboard, ram, SSD, and an Edu version of Windows 10. iGPUs nowadays, at least from AMD are in the 860m range, and you'd have the option of plunking a much more capable GPU in.
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