In order to translate the values in a dropdown list using an exposed filter in Views, follow the process outlined in this comment from mlecha.

I was able to do this today.

1 – Turn on “Field translation” sub-module of i18n module
http://drupal.org/project/i18n

2 – Turn on “Internationalization Views” module
http://drupal.org/project/i18nviews

3 – Translate Fields
admin/structure/types/manage/CONTENT_TYPE/fields/FIELD_NAME/translate

Translate on “Field instance” and “Field settings” panels

4 – Add Field to your view and use Formatter “Default translated”

5 – Add Filter, look for fields that are “(translated)”

6 – Expose this filter to visitors when configuring the filter.