Just reinstall SunBlogNuke like the fresh installation and it will be upgraded. You go to "host->module definitions", click "add new module" action menu, select the module zip file (no need to do anything to that zip file first). Note that you need to do some backups with one of the following ways:

Common Way: As with any release, we recommend you perform a complete file and database backup before performing any upgrade on a production website and that you first conduct a trial upgrade on a staging version of the site. Following these guidelines will ensure that you are able to recover should any unforeseen problems arise during the upgrade process.

Lightweight and quick way: Just back up your customized works, include the theme, style, view controls and Local Resources files. Note that you may do some combinations or works after it if you had done some customization or there are some errors.

Until now if you would like to upgrade it with latest package in your DNN4 website, the recommended upgrade path will be as follows:

v2.x/v3.x/v4.x –> v5.2(the latest package compatible with DNN4)

but if you would like to upgrade it with latest package in your DNN5/DNN6/DNN7+ website, the recommended upgrade path will be as follows:

v2.x/v3.x/v4.x –> v5.2 –> v6.1 or the latest package

Known issues related with upgrade

The original version is v3.x and we did upgrade with latest packages. Unfortunately, our website looks broken after upgrade?
That may be caused by web.config still exist the old assembly relationship. Please open up your web.config, find out the element with "MetaWeblog.aspx" and modify it as follows:
Original:
<add verb="*" path="MetaWeblog.aspx" type="DnnSun.SunBlogNuke.MetaWeblogAPI.MetaWeblog, SunBlogNuke.Core" validate="false" />
Modified:
<add verb="*" path="MetaWeblog.aspx" type="SunBlogNuke.MetaWeblogAPI.MetaWeblog, SunBlogNuke.Core" validate="false" />

Other resource link: How to upgrade a DNN module or the importance of backing up