I have a iphone 4 and i can't restore it and i forgot my password?

So i have a iphone 4 and it has a passcode that I can't remember and it won't let me restore it at all itunes keeps telling me to unlock the phone then i can restore it please help? What are my options and when i try to put it into recover or DFU error 3194 comes up

You can manually reset your iPhone but lose all data. Shut it down, then turn it on while pressing the power and home button at the same time.

My sisters is the same way but it won't work if I hold the home and lock button at the same time