Before asking the question, I searched for a similar question on StackOverflow:
file was loaded in the wrong encoding: 'UTF-8' in android studio
But
Click on setting symbol just right side of error and select suppress for class. That works for me and resolve my issue.
I tried all possibilities posted here but any success with them, what worked was just to re import the project
Simply just delete the IDE's Settings Directory,
See the answer here: file was loaded in the wrong encoding: 'UTF-8' in the Android Studio