thank you guys! I've solved this problem :)
first I run
    bundle update jquery-rails
but it only get me to version 1.0.16. So I went to their homepage and 
download 1.0.17 myself. then I uninstalled version 1.0.16, replaced it 
with version 1.0.17. all of a sudden, "bundle install" was ok!  thank 
you for all the helping!
And special thanks to Rob. I've never understand the "~>" until your 
post :)

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