Resolution means that the issue is done completely. It's only like a flag.
Open, Pending - Statuses, that don't need the resolution because they are not finished yet.
Closed and Resolved are statuses and resolution can be applied in the transition configuration:
1. Go to Admin -> Issues -> Workflows
2. Select your workflow
3. Add necessary statuses and create transitions between them
4. Click the necessary transition and click Post-functions
5. Click Add post function -> Update Issue Field
6. Choose Resolution and None
Best practice is to either set the resolution on a Workflow transition (using a post function) or to include a screen with the Resolution screen on the appropriate workflow transitions.
You shouldn't normally need to set a resolution outside of a workflow transition.
Hope this helps,
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