using featureCursor.NextFeature() in a loop will retrieve all the features. Use ITopologicalOperator.ConstructUnion method to merge the geometries.
IGeometryCollection unionCol = new GeometryBag() as IGeometryCollection;
ITopologicalOperator unionPoly = new PolygonClass() as ITopologicalOperator;
object Missing = Type.Missing;
IFeature pFeature = featureCursor.NextFeature();
while(pFeature!=null)
{
IGeometry pGeometry = pFeature.Shape;
unionCol.AddGeometry(pGeometry , ref Missing, ref Missing);
pFeature = featureCursor.NextFeature();
}
unionPoly.ConstructUnion((IEnumGeometry)unionCol);