I did a bit of research before posting this thread and the internet recommended that I do exactly what you just said. Didn't fix it.
As for the texture in photoshop, here's a screengrab of the texture zoomed in to the area shown on the model. As you can see, there's no blurring present.
When you say it will make everything look pixelated, do you mean the texture or the outline of the model? I'm actually interested in going for a pixelated look for the texture, so how would I go about changing my texture filtering?