Android Studio: Extension Methods are not supported at this language level
<p>The following code produced the error 
"Extension Methods are not supported at this language level"
in android studio:</p>

<pre><code>public interface Test {
 static String Test2(String A) {
    return "";
    }
}
</code></pre>

<p>AS 2.0 Beta 2</p>

<p>What have I done wrong?</p>