I have given a database which doesn't allow to restore to my sql server give me error of database version mismatch

my SQL server is 2008 build 10.0.5500.0
while the given database is running on
SQL server 2008 r2 build 10.5.2500

now what should i do to use that database?
Q1: do i need to upgrade from 2008 to 2008 r2 version ?
Q2: do i need to install ms SQL server 2008 r2 version.?

i run windows update and currently installed sql server 2008 doesn't update further so i have to download r2 version or what?