You need to create a new image that is the size you want and then draw the existing image into that image.
There is a generic way to do it via CGBitmapContext but for the iPhone you should use UIGraphicsBeginImageContext, UIGraphicsGetCurrentContext, CGContextDrawImage, UIGraphicsGetImageFromCurrentImageContext, and UIGraphicsEndImageContext.
Edit: I should add, CGContextDrawImage will automatically scale the image to fit whatever rect you pass it.