This file is not UTF-8 encoded. From the doc:
If your data contains non-English characters, for example, characters specific to the French, Russian, Greek, Japanese, or Arabic alphabets, the file you import must be encoded as Unicode or UTF-8, and not ASCII. If you import an ASCII-encoded file containing non-English characters, it may display attribute values using unexpected characters. You can save a text file as UTF-8 or Unicode in Windows. Open the file in a text editor such as Notepad, click File > Save As, and choose UTF-8 or Unicode from the Encoding drop-down list shown at the bottom of the Save As dialog box.
Saving the file in UTF-8 works fine.