The About dialog is indicating that it's loaded into MonoDevelop itself, since MD uses System.Xml. The list of assemblies there is purely for diagnosing problems with MD.
You need to find your project in the Solution Pad, then find the "References" folder. This isn't an actual folder, but instead is a representation of the assemblies referenced by your project. Double-click on it to get to the "Edit References" dialog, from which you can add more references. You can also get there via the "Edit references command in the right-click menu on the References folder, and in the Project menu.