i'd like to change the dynamic text in the header that makes the title of the site with a logo i've designed.

how do i edit this code to achieve this?

<div id="logo">

        $logo = $options['logo'];
        $retina_logo = $options['retina_logo'];
        $has_retina_logo = $retina_logo ? 'has-retina-logo' : '';

        if ($logo != '') { ?>
        <a href="<?php echo home_url(); ?>">
            <img class="<?php echo $has_retina_logo; ?>" src="<?php echo $logo; ?>" alt="logo"/>
            <?php if($retina_logo) { ?>
                <img id="retina-logo" src="<?php echo $retina_logo; ?>" alt="logo"/>
            <?php } ?>
        <?php } else { ?>
        <h4 class="logo"><a href="<?php echo home_url(); ?>"><?php bloginfo('name');?></a></h4>
        <?php } ?>


You can do it in one of two ways:

Method 1
It seems that the theme you are using has an options panel where you can define a logo. Have you looked into that?

Method 2
The dirty way to do it.
Change this line:
$logo = $options['logo'];
$logo = "URL_TO_LOGO";

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