Unused local variable load_error in boot.rb

I’m getting an ‘Unused local variable load_error’ in my .config/

This seems to be the problem code:

rescue Gem::LoadError => load_error
  $stderr.puts %(Missing the Rails #{version} gem. Please `gem

install -v=#{version} rails`, update your RAILS_GEM_VERSION setting in
config/environment.rb for the Rails version you do have installed, or
comment out RAILS_GEM_VERSION to use the latest version installed.)
exit 1

Should I put in my current Rails version?
What is this looking for?
Will this freeze my system?
Do I have to change this when I update gems or rails?

My .config/environment.rb file reads as follows [comments removed]

RAILS_GEM_VERSION = ‘2.3.2’ unless defined? RAILS_GEM_VERSION
require File.join(File.dirname(FILE), ‘boot’)
Rails::Initializer.run do |config|
config.time_zone = ‘UTC’

Any help will be greatly appreciated. Thanks in advance,