Click on "Geoprocessing" on your toolbar in ArcMap and then select "Dissolve".
Dissolve is used to combine adjacent polygons into one polygon (it "dissolves" the internal lines between them). Looks like your output may already be dissolved. Dunno why it pixelated that badly. I've never seen polygon output that rough.
What did you mean by "dissolve"?
Try Conversion Tools\From Raster\Raster to Polygon tool, use Simplify Polygons, then Dissolve them.
Depending on your license, I believe there is a geoprocessing tool that can do this for you. How are you extracting the saltmarsh area?
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