Right click on Project. Go to Properties. Choose Android on the left site. On the right a you can see list of android API versions. Choose the proper version (android API 16). Click apply.
If you do not see the proper version go to windows. go to Android SDK Manager and download the android API 16 (Android 4.1.2). Repeat the steps as above.
In the below picture you can see API 16.If not found there, you can download API 16 using android sdk manager. If you already have click the check box next to android 4.1.2, click apply and then OK.
To download sdk form the sdk manager in eclipse go to windows, Android SDK Manager. You should see the following window and check android 4.1.2 which API 16 and click install.The below image is an example for API-15(you have to do it for API-16)