it sounds to me that the Theme (or Widget within the theme “Arras”) is not compatible with the new WordPress release.
either try editing the widgets.php file (line 404) or you can follow the steps to install a previous version of WordPress that is compatible with your theme.
another thread about that is here:
http://wordpress.org/support/topic/how-do-i-install-an-older-version-of-word-press-thanks?replies=2
But how can I do that when I can’t log into the site (all I get is the line above)?