Averageif criteria

Hi All,

I want to average the numbers in column C based on criteria in column B. Example, if the value of any of the cells in cells B2:B35 is between 1.0 and 2.0, then the corresponding cells in column C should be averaged. I hope that makes sense...
I tried this formula, but am getting a "divide by zero" error...

=AVERAGEIF(B2:B35,OR(B2:B35>1,B2:B35<=2),C2:C35)