To login with facebook through an iOS app three options are available
If native facebook app is available you will be directed to the app (You need to register url scheme)
If Safari can launch, you will be directed to the login page of facebook through safari ((You need to register url scheme))
If the two options are not available (You are getting this error) you will be provided with a web view there you can login
Your error message shows the first two options are not available in your case, probably you may forgot to register for the url scheme
Update
In FacebookSDK 3.9
they have added one more login flow(iOS Login Dialog) gets the higher priority. As per SDK 3.9 from documentations.
1.iOS Login Dialog
2.Facebook App Native Login Dialog
3.Facebook App Web Login Dialog
4.Mobile Safari Login Dialog
If the person has set up their Facebook account on the device, then that login dialog option is selected. If the Facebook account is not set up, the Facebook SDK checks to see if the Facebook app is installed on the device. If the Facebook app is installed, the Facebook app native login dialog is presented if it's supported. If the native login dialog can't be displayed, the Facebook app mobile login dialog is presented. If the Facebook app isn't installed, mobile Safari is launched to display the login dialog.
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