Abstract
The observed quantization of the Hall conductivity in graphene at high magnetic fields is explained as being due to the dynamically generated spatial modulation of either the electron spin or the density, as decided by the details of Coulomb interaction on the scale of lattice constant. It is predicted that at a large in-plane component of the magnetic field such ordering may be present only at the filling factor f=±1 and absent otherwise. Other experimental consequences of the theory are outlined.