Integrated graphics means that the graphics processing is performed using a chip on the same motherboard or integrated circuit as the central processing unit. On the plus side it means they're small, don't produce a lot of heat, and they're cheap. However, they're not very good for really graphic-intensive games and some design & video applications especially for 3D and visual FX work.
Dedicated (or discrete) graphics means the graphics processing is performed separately from the main central processing unit. They have their own dedicated RAM, and often their own cooling solution. They can be very powerful but also very expensive and take up a lot more room.
Photoshop (and to a lesser extent, Elements) has slowly been offering extra graphics acceleration in some areas of the application over the last few years, and will no doubt offer more in the future. You can read more about this here:
Photoshop graphics processor (GPU) card FAQ
So basically the more graphics power you have, the faster and smoother some Photoshop operations will be.
Where the graphics power becomes more important is with Premiere. As Premiere is not your main application, this is why I've suggested you can live with just integrated graphics rather than a dedicated graphics card. But if you start to use Premiere more, a dedicated graphics card should help speed up about 40 different effects (they will take a lot less time to be rendered, i.e. processed and displayed on-screen) and exporting your final videos should take a lot less time as well.
Don't get confused with all of this and the quality of your display. The Dell XPS 13 system you've found has a brilliant display - very bright and sharp, great contrast, and 100% coverage of the sRGB colour gamut 🙂
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