JQuery .on method was added in 1.7. You need to update your JQuery as from your screenshot you are currently using 1.6
Once downloaded from here, change the below where marked
<head>
<link href="css/scrollable-horizontal.css" rel="stylesheet" type="text/css" />
<link href="css/scrollable-buttons.css" rel="stylesheet" type="text/css" />
<script src="js/jquery-1.6.1.min.js"></script> <!-- Change this line -->
<script src="js/jquery.tools.min.js"></script>
</head>