Placed PSD file has Jagged Edge

Products:

PS CC

AI CC

I have a 2500 x 4088 px PSD file with no jagged edges, until it is placed into Illustrator.

I believe that I have placed the PSD file in its original size, but may be wrong. My artboard was created to be larger than the original image, and when placing the file I simply clicked on the artboard.

I have not knowingly increased or reduced the dimensions of the placed file.

Will the jagged edge be present if I place the AI file into InDesign?

Is there a setting somewhere that I need to change to remove the jagged edge?

Thanks