The Visible-light Imager and Magnetograph (VIM) proposed for the ESA Solar Orbiter mission will observe a photo spheric spectral line at high spatial resolution. Here we simulate and interpret VIM measurements. Realistic MHD models are used to synthesize "observed" Stokes profiles of the photospheric Fe I 617.3 nm line. The profiles are degraded by telescope diffraction and detector pixel size to a spatial resolution of 162 km on the solar surface. We stufy the influence of spectral resolving power, noise, and limited wavelength sampling on the vector magnetic fields and line-of-sight velocities derived from Milne-Eddington inversions of the simulated measurements. VIM will provide reasonably accurate values of the atmospheric parametes even with the filter widths of 120 Å and 3 wavelength positions plus continuum, as long as the noise level is kept below 10-3 Ic.