Email not working with fresh Drupal install on Ubuntu 14.04

I created a Droplet using Ubuntu 14.04 and the 1-click Drupal Image. The image creates the server with Nginx, php-fm, and MySQL along with the latest version of Drupal (currently 7.32). Everything went well but I noticed soon after that Drupal cannot send emails. When I try to create a test user Drupal displays the following alert:

Unable to send e-mail. Contact the site administrator if the problem persists.

Can Ubuntu or PHP send mail for Drupal or do I need to set up a mail transfer agent like Sendmail or Postfix?

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In order to send emails from your droplet, you’ll need to have an MTA installed such as Postfix. You can install it by running:

sudo apt-get install postfix

Then, edit /etc/postfix/ and set inet_interfaces to loopback-only:

inet_interfaces = loopback-only

Finally, restart postfix:

sudo service postfix restart

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