
I use elements 7 and the tool you're after is on the left between the Cookie Cutter and the Red Eye Removal. Select this and draw a line along what you need to be horizontal.
You'll then either have to crop the image back to rectangular, or transform (Ctr+T) to resize it back to fill the original canvas.
There is an option to alter perspective, which is in >Filter>Correct Camera Distortion, but I don't use this very often.
Cheers