This 16 inch laptop has 2560x1600 resolution. If you set it to 200% then that's the equivalent of 800 pixels which is what you expect in a 13 inch laptop. For a 16 inch laptop there's not enough pixels.
Why set it to 200%? Because as Steve Jobs has explained, the only resolution that looks good after 100% is 200%. Then 400%. If you set it any in-between scale (such as 150% or 300%) then you will have display artifacts, such as horizontal lines appearing to have different widths when they are all in fact set to 1px.