Consider that your file is perhaps not using UTF-8 as the encoding.
You are reading the file with the UTF-8 codec but decoding fails. Check that your file encoding is really UTF-8.
Note that UTF-8 is an encoding out of many, it doesn't mean 'decode magically to Unicode'.
If you don't yet understand what encodings are (as opposed to what Unicode is, a related but separate concept), you need to do some reading: