This error indicates an issue with the login information you are using for your PayPal Payments Pro connection.
Please try and remove your credentials PayPal credentials from Settings>Online Payments, then re-enter them. If you copied and pasted the data, make sure there are no spaces before or after the information.
If this does not solve the issue, please double check with PayPal to make sure you use the correct PayPal Payments Pro credentials and API key.
Please see a tutorial here to get the correct API Key.
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