The problem seems to occur because i Tunes cannot communicate with Apple’s update servers.For Sometime jailbreak i Phone, i Pad and i Pod touch setup should by modify host file.
Connectivity issue: On rare occasions a connectivity issue with the update server could be the reason i Tunes Error 3194 crops up.
i Tunes Error 3194 sometimes happens when you upgrade or degrade your i OS devices.
The device you're trying to erase will need to have internet access and "Find My i Phone" enabled.
You'll be able to restore the device from any i Cloud or i Tunes backup after erasing it. Start the i OS device setup process as if it were a new phone.
Disable firewall or, anti-virus software: Disable firewall or, any anti-virus software on your PC temporarily as they could prevent i Tunes from connecting to Apple servers.