cannot resolve symbol 'android' on android

I have been making an app showing MapView, It got build and I even am using it on my device now that i want to add still more functionality , but suddenly studio is giving errors "cannot resolve symbol 'android'."...!!!!

I updated studio to 0.8.6 (latest) .... but damn..!! nothing changes ..

Errors :

package com.androidhive.googleplacesandmaps;

import java.util.List;

import android.content.Intent;
import android.graphics.drawable.Drawable;
import android.os.Bundle;
import android.util.Log;

import com.google.android.maps.GeoPoint;
import com.google.android.maps.MapActivity;
import com.google.android.maps.MapController;
import com.google.android.maps.MapView;
import com.google.android.maps.Overlay;
import com.google.android.maps.OverlayItem;

public class PlacesMapActivity extends MapActivity {
    // Nearest places
    PlacesList nearPlaces;

    // Map view
    MapView mapView;

    // Map overlay items
    List<Overlay> mapOverlays;

    AddItemizedOverlay itemizedOverlay;

    GeoPoint geoPoint;
    // Map controllers
    MapController mc;

    double latitude;
    double longitude;
    OverlayItem overlayitem;

    @Override
    public void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);
        setContentView(R.layout.map_places);

        // Getting intent data
        Intent i = getIntent();

        // Users current geo location
        String user_latitude = i.getStringExtra("user_latitude");
        String user_longitude = i.getStringExtra("user_longitude");

        // Nearplaces list
        nearPlaces = (PlacesList) i.getSerializableExtra("near_places");

        mapView = (MapView) findViewById(R.id.mapView);
        mapView.setBuiltInZoomControls(true);

        mapOverlays = mapView.getOverlays();

        // Geopoint to place on map
        geoPoint = new GeoPoint((int) (Double.parseDouble(user_latitude) * 1E6),
                (int) (Double.parseDouble(user_longitude) * 1E6));

        // Drawable marker icon
        Drawable drawable_user = this.getResources()
                .getDrawable(R.drawable.mark_red);

        itemizedOverlay = new AddItemizedOverlay(drawable_user, this);

        // Map overlay item
        overlayitem = new OverlayItem(geoPoint, "Your Location",
                "That is you!");

        itemizedOverlay.addOverlay(overlayitem);

        mapOverlays.add(itemizedOverlay);
        itemizedOverlay.populateNow();

        // Drawable marker icon
        Drawable drawable = this.getResources()
                .getDrawable(R.drawable.mark_blue);

        itemizedOverlay = new AddItemizedOverlay(drawable, this);

        mc = mapView.getController();

        // These values are used to get map boundary area
        // The area where you can see all the markers on screen
        int minLat = Integer.MAX_VALUE;
        int minLong = Integer.MAX_VALUE;
        int maxLat = Integer.MIN_VALUE;
        int maxLong = Integer.MIN_VALUE;

        // check for null in case it is null
        if (nearPlaces.results != null) {
            // loop through all the places
            for (Place place : nearPlaces.results) {
                latitude = place.geometry.location.lat; // latitude
                longitude = place.geometry.location.lng; // longitude

                // Geopoint to place on map
                geoPoint = new GeoPoint((int) (latitude * 1E6),
                        (int) (longitude * 1E6));

                // Map overlay item
                overlayitem = new OverlayItem(geoPoint, place.name,
                        place.vicinity);

                itemizedOverlay.addOverlay(overlayitem);


                // calculating map boundary area
                minLat  = (int) Math.min( geoPoint.getLatitudeE6(), minLat );
                minLong = (int) Math.min( geoPoint.getLongitudeE6(), minLong);
                maxLat  = (int) Math.max( geoPoint.getLatitudeE6(), maxLat );
                maxLong = (int) Math.max( geoPoint.getLongitudeE6(), maxLong );
            }
            mapOverlays.add(itemizedOverlay);

            // showing all overlay items
            itemizedOverlay.populateNow();
        }

        // Adjusting the zoom level so that you can see all the markers on map
        mapView.getController().zoomToSpan(Math.abs( minLat - maxLat ), Math.abs( minLong - maxLong ));

        // Showing the center of the map
        mc.animateTo(new GeoPoint((maxLat + minLat)/2, (maxLong + minLong)/2 ));
        mapView.postInvalidate();

    }

    @Override
    protected boolean isRouteDisplayed() {
        return false;
    }

}

build.gradle file :

buildscript {
    repositories {
        mavenCentral()
    }
    dependencies {
        compile 'com.google.android.gms:play-services:5.0.77'
        classpath 'com.android.tools.build:gradle:0.12.+'
    }
}
apply plugin: 'android'

dependencies {

    compile fileTree(dir: 'libs', include: '*.jar')
}

android {
    compileSdkVersion 12
    buildToolsVersion "20.0.0"

    sourceSets {
        main {
            manifest.srcFile 'AndroidManifest.xml'
            java.srcDirs = ['src']
            resources.srcDirs = ['src']
            aidl.srcDirs = ['src']
            renderscript.srcDirs = ['src']
            res.srcDirs = ['res']
            assets.srcDirs = ['assets']
        }

        // Move the tests to tests/java, tests/res, etc...
        instrumentTest.setRoot('tests')

        // Move the build types to build-types/<type>
        // For instance, build-types/debug/java, build-types/debug/AndroidManifest.xml, ...
        // This moves them out of them default location under src/<type>/... which would
        // conflict with src/ being used by the main source set.
        // Adding new build types or product flavors should be accompanied
        // by a similar customization.
        debug.setRoot('build-types/debug')
        release.setRoot('build-types/release')
    }

}

Please help .. Thanks in advance

It is recommended to use the new Maps v2 API.

To use it, add the following dependency to your build.gradle:

compile 'com.google.android.gms:play-services:5.0.77'

And then follow Google's guide to set it up. You can find it here

Edit: To elaborate more on the build.gradle file, here is what mine looks like.

apply plugin: 'android'

android {
    compileSdkVersion 19
    buildToolsVersion '20'
    defaultConfig {
        minSdkVersion 14
        targetSdkVersion 19
        versionCode 1
        versionName '1.0'

        applicationId '<package_name>'
    }
    compileOptions {
        sourceCompatibility JavaVersion.VERSION_1_7
        targetCompatibility JavaVersion.VERSION_1_7
    }
    buildTypes {
        release {
            runProguard false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.txt'
        }
        debug {
            debuggable true
            runProguard false
        }
    }
}

dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile 'com.android.support:appcompat-v7:19.+'
    compile 'com.android.support:support-annotations:+'
    compile 'com.google.android.gms:play-services:5.0.77'
}

Important Note: There is two build.gradle files in every project. Put this in the one that is inside the corresponding module folder. The module is often called app, if you haven't renamed it.

After adding it make sure you click on the Sync Project with Gradle Files button on the top, so it will download the required dependencies