It's not an Exception, it's an Error. You aren't really supposed to handle Errors ... they're usually fatal. In this case, the code (It doesn't really matter what handling you put in your code) won't run because of the error.
JavaBeginnersFaq "Yesterday is history, tomorrow is a mystery, and today is a gift; that's why they call it the present." Eleanor Roosevelt
By using the switches, the Java compiler will create a class file that's compatible with Java 1.2 or newer.
(Note that the -source and -target switches are not a magic way to make your program run on any old Java version; if you use new language features or API classes that are not in the old version, it won't compile or run properly on the old version.)