You're getting that because you're naughty and Jailbroke your phone.
When you update your IOS it checks the firmware with Apple's signing server gs.apple.com
Check your HOSTS file in (Open in Notepad/TextEdit)
Windows -> c:\windows\system32\drivers\etc\hosts
Mac -> /etc/Hosts
Add the following line to the bottom of the file
Save the Hosts file and restart the PC/Mac. Should fix it.
Reason that its doing that is because it errors with Apple's signing server (Moreso it rejects you because your running hacked firmware). Changing the above to Cydia's signing server will allow it to update properly.
Once you've finished the update - make sure you delete that line back out of your HOSTS file and reboot again.
@tadct the phone itself might be new from Apple but 3194 is a signing error on Firmware updates from SHSH Blobs. If you have previously had another iPhone (3GS) and have jailbroken that it might have still patched your HOSTS file and it hasn't been changed from that Jailbreak.. Just check that file first and foremost to make sure its pointing at the right place first