The image is interpreted the right way up by the brain which is connected to the eye via the optic nerve.
Light rays falling on the cornea, which is a transparent dome-like structure covering the iris, are refracted (bent) towards the pupil, on entering the pupil the light rays strike the lens. The light rays are refracted a second time whilst passing through the lens, which focuses the light directly onto the retina, where the image is formed but inverted (upside down).
Impulses are sent along the optic nerve to the optic lobe of the brain, and finally to the visual centre of the cerebrum, where the image is interpreted the correct way and actually seen.
The eye is able to focus both far and near objects on the retina by the action of ciliary muscles.