I can get a similar error (mentioning the same byte value) doing this:
>>> 'å'.encode('latin-1')
b'\xe5'
>>> _.decode('utf-8')
Traceback (most recent call last):
File "<pyshell#18>", line 1, in <module>
_.decode('utf-8')
UnicodeDecodeError: 'utf8' codec can't decode byte 0xe5 in position 0: unexpected end of data
This implies that your data is encoded in latin-1 rather than utf-8. In general, there are two solutions to this: if you have control over your input data, re-save it as UTF-8. Otherwise, when you read the data in Python, set the encoding to latin-1. For a django template, you should be able to use the first - the editor you use should have an 'encoding' option somewhere, change it to utf-8, resave, and everything should work.