Don't about the code but you can figure it out like this way :
Go into the 'window' tab then preferences->java->Installed JREs. You can add your own JRE(1.7 or 1.5 etc) also.
For changing the compliance level window->preferences->java->compiler. C Change the compliance level.
Eclipse uses the default Java on the system to run itself. This can also be changed in the eclipse.ini file in your eclipse install folder.
To find out the version of java that your eclipse project is using, see Project->properties->build path->Libraries tab and see the JRE system library thats being used. You can also check it out at Window->Preferences->Java->Installed JREs. This is a list of all JREs that eclipse knows about
To find out using code, use the System.getProperty(...) method. See http://java.sun.com/j2se/1.5.0/docs/api/java/lang/System.html#getProperties() for supported properties.