As the error says: You need to use this line inside Function or Section.
The correct usage:
Section "Section name"
ZipDLL::extractall "C:\Users\sid008\Desktop\NSISTutorials.zip" "F:\nist" "<ALL>"
SectionEnd
Function Func
ZipDLL::extractall "C:\Users\sid008\Desktop\NSISTutorials.zip" "F:\nist" "<ALL>"
FunctionEnd