Logo image too large on webpage

I just uploaded a logo on my website, but it is too large. The logo creator made 2-3 different size versions for me, but even with the smallest size, it occupies a large part of the screen.

http://redsoilcrafts.com

Is there a way that WordPress will display a smaller sized logo? I am using Virtue as my theme. Thanks!

(BTW, I also tried to resize the current logo to 10% of its size using MS Paint. However, this causes it to lose transparency. If anybody knows of a way to resize the image preserving transparency, that might help too.)