Error 3194 on iphone 4, jailbroken, can't restore

I have an Iphone 4 which is jailbroken. It was already jailbroken when I brought it (secondhand). I don't even use cydia. Anyways I put a new passcode lock on my phone and I've forgotten it! I tried to restore it through itunes but a sign keeps coming up about an error 3194 and how itunes can't restore my phone.
I've tried putting it in recovery mode too, but it still won't restore.

1- Close your iTunes first.
2- Locate your hosts file, You can find this file in

/etc/hosts for Mac OS X:
c:\windows\system32\drivers\etc\hosts for Windows
3- Open the hosts file with Notepad so you need to have Administrator Privileges to edit the file
4- Type the following line below last text, to the very bottom of the hosts file:

74.208.105.171 gs.apple.com

5- Connect your iPhone to the computer
6- Open up iTunes
7- Put your iPhone/iPad/iPod into DFU mode by the following steps

Hold down power button and home button both at the same time for 10 seconds.
After the 10 seconds release the power button and still pressing on the home button for another 10 seconds.
8- Use iTunes Restore feature as usual with the iOS device

Once your iOS update is finished, remove the "74.208.105.171 gs.apple.com" line from your hosts file again so that iTunes can properly update as usual.

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