Go to File > Settings > Gradle you will end up with this screen for setting up your gradle :
Also make sure you have Google Repository in your Android SDK directory which will be located at :
$SDK_DIR\extras\google\m2repository\com\google\android\gms\play-services\3.1.36
If not do install it from SDK Manager > Extras > Google Repository first.
EDIT :
All your build.gradle
(If you are using root level build.gradle
0.8
dependencies { classpath 'com.android.tools.build:gradle:0.8.+' }
UPDATED :
Mapping is :
| Android Gradle Plugin | Gradle Version | 0.7.+ 1.9 0.8.+ 1.10