If you come across this error which prevents your Android solution from building properly, it is most probably caused by discrepancy between the targeted Android API and the installed Android SDK tools/Android SDK build tools.
Usually such error appears when the app targets the latest version of Android, but the latest version of the tools is not installed. Figure 1 shows how your Android SDK Manager should be set up to be able to target the latest version of Android (the example refers to Android 7.1 Nougat):
Figure 1: Android Application settings:
Figure 2: Android SDK Manager installed tools