First you need to process the XML to retrieve ONLY the value of queue which should be like this
B4X:
{"error":"","Queue":[{"Test":"With Error"}]}
Next you use the Json Parser to get the error value
B4X:
Dim parser As JSONParser
parser.Initialize(<text>)
Dim jRoot As Map = parser.NextObject
Dim error As String = jRoot.Get("error")
Dim Queue As List = jRoot.Get("Queue")
For Each colQueue As Map In Queue
Dim Test As String = colQueue.Get("Test")
Next