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Just as a complement to kcrisman's comment and useful links.

You need to use the package sagetex.sty from the version of Sage that you are running.

To ensure the correct sagetex.sty will be used, copy it to an appropriate location: - either in the system's texmf hierarchy - or in your local texmf hierarchy - or next to the file you are compiling.

If you go for the last option, you could run this sequence of shell commands:

$ cd /working/dir/
$ SAGE_ROOT=`sage -c 'print SAGE_ROOT'`
$ cp $SAGE_ROOT/local/share/texmf/tex/generic/sagetex/sagetex.sty .

(this will copy the correct sagetex.sty to your working directory).

Then you can run latex, sage, and latex again to process your file.

$ pdflatex file.tex
$ sage file.sagetex.sage
$ pdflatex file.tex