Reposting as an answer:
The gedit IPython plugin appears to be written for Python 2 only, but it looks like it only takes a small change to adapt it to Python 3. Find the line on which the error occurred:
self.socket.sendto(code, (self.listener_host, self.listener_port) )
And change it to this:
self.socket.sendto(code.encode('utf-8'), (self.listener_host, self.listener_port) )
UTF-8 should be the right default on most modern Linux systems.