Android studio 1.0.2 not building app:mergeDebugResources error

Question

I just installed android studio on linux , configured the SDK and installed the building tools now when I try to sync with gradle or (build the app) it fails and throws this

Answer 1

I had the same issue even after trying out the accepted solution. In my case the gradle build tool version that I've specified was not installed on my debian system. It worked like a charm after I changed the buildToolVersion to the installed version which was (23.0.2)