Take a look at this:
Version Information: Microsoft .NET Framework Version:2.0.50727.3623; ASP.NET Version:2.0.50727.3618
Your Application Pool is configured to run under .NET 2, not .NET 4. The targetFramework attribute is part of .NET 4, hence the error.
Make sure the application pool is set up to run under .NET 4 as explained in the book.