The size of the characters in your font file has a definite affect on how they appear.
If the resolution of each character is 12x20 and you size it up to be 24x40 in code, it will be grainy because it is making the visible image larger than the source image.
This applies to all images, not just fonts.
The resolution on your PC affects all images (not just AppGameKit stuff) the same way. If you try to show something in a higher resolution than the source, it may not be smooth. It depends on the stuff displaying things.
Cheers,
Ancient Lady