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That error means the request used to confirm your PayPal Express credentials are valid is failing and returning a WP_Error, EE is then trying to use a value from the response but its invalid.
This usually means there is an issue with the server preventing it from connecting to PayPal Express.
On that site can you install this plugin:
Once that plugin has been activated go to Event Espresso -> Payment methods -> PayPal Express, provide your details and click save again (note it will again throw the error).
Now go to Dashboard -> Settings -> Log HTTP Requests.
Click on the ‘https://api-3t.sandbox.paypal.com/nvp’ request, does it show a WP_Error in the response field there there?