This is because one of your project is targeting .NET 3.5. All of your projects should be targeted to .NET 4.0 at least.
If your .cs project does not allow to view or change the Target Framework, as it was in my situation: You will need to change it manually in .csproj. Open the .csproj in notepad. In this line
<Project ToolsVersion="3.5"...
change the ToolsVersion to at least 4.0.