Dynamic paint displace - jagged edges

Hello comunity,
could anyone help me with my problem?
I make dynamic paint displace via making texture and then applying displace modifier. As you can see on the image, there are some jagged edges:

How can I smooth my letters? Could anyone help me with my problem?

It can only work with the polygons you give it. This is the 3d mesh equivalent of zooming in close on a low-res image and seeing the pixels. If you want smoother edges, you need more subdivisions.

Thank you very much for your reply. Unfortunately it is not issue of resolution. I figured it out. I just put smooth modifier after displace modifier and now, it is smooth.