UnicodeDecodeError when using pymssql with freetds

I want to get a field in SQL Server 2008 from python 2.6. Here is my freeTDS.conf file:

[ARGSERVER03]
    host = 192.168.1.3
    port = 1433
    tds version = 7.0

      

        
        
        
      

    

Here is the code:

conn = pymssql.connect(host='192.168.1.3', user='****', password='****', database='TrafficMonitor', as_dict=True, charset='UTF-8')
i = 0
cur.execute('SELECT * FROM dbo.tblTrafficCounterData')
while i < 10:
    car = cur.fetchone_asdict()
    if car is None:
        break
    c = car['Class']
    print c
    i = i + 1

      

        
        
        
      

    

But it gives:

UnicodeDecodeError: 'utf8' codec can't decode byte 0xd3 in position 0: invalid continuation byte

      

        
        
        
      

    

The Unicode field is in Persian. Trace back for linecar = cur.fetchone_asdict()

[change]

I checked the database collation in the database properties from sql server management studio and this:

Arabic_CI_AS

      

        
        
        
      

    

But when I use this encoded it gives:

LookupError: unknown encoding: Arabic_CI_AS