I am developing an app to manipulate XML in Windows Phone 8.1 RT. the code is below
private void btnXcute_tapped(object sender, TappedRoutedEventArgs e)
{
    xmlmanipulation();
}
private async void xmlmanipulation()
{
    Random rand = new Random();
    try
    {
        var filex = await ApplicationData.Current.LocalFolder.OpenStreamForReadAsync(@"xmlfile.xml");
        XDocument xdoc = XDocument.Load(filex);
        var word = xdoc.Descendants("word");
        int max = word.Count();
        txt1.Text = word.FirstOrDefault().Value.ToString();
        txt1_Copy.Text = xdoc.Descendants("meaning").FirstOrDefault().Value.ToString();
        //node removal part
        xdoc.Root.Elements("wordset").Where(dim_word => dim_word.Element("word").Value == word.FirstOrDefault().Value.ToString() && dim_word.Element("meaning").Value == xdoc.Descendants("meaning").FirstOrDefault().Value.ToString())
            .FirstOrDefault().Remove();
        //file overwriting part
        var file = await ApplicationData.Current.LocalFolder.CreateFileAsync("xmlfile.xml", CreationCollisionOption.ReplaceExisting);
        using (var stream = await file.OpenStreamForWriteAsync())
        {
            xdoc.Save(stream);      // Save XDocument into the stream
            stream.Position = 0;
        }
    }
    catch (Exception s) 
    {
        txt1.Text = s.Message;
        txt1_Copy.Text = s.Source;
    }
}
I have placed the XML file(xmlfile.xml) in the project main folder as below

But I get The system cannot find the file specified. (Exception from HRESULT:0x80070002) and the Exception source is mscorlib.
I am very new to XML manipulation. Please help me. All I need to read an XML file, remode a the very first <wordset> element on it, save the file (overwrite) on a button click. I have total 4 <wordset> elements and if I press the button 4 times, all the elements will be removed in the file. 
My XML file is
<?xml version="1.0" encoding="utf-8" ?>
<xmlfile>
  <wordset>
    <word>word1</word>
    <meaning>meaning1</meaning>
  </wordset>
  <wordset>
    <word>word2</word>
    <meaning>meaning2</meaning>
  </wordset>
  <wordset>
    <word>word3</word>
    <meaning>meaning3</meaning>
  </wordset>
  <wordset>
    <word>word4</word>
    <meaning>meaning4</meaning>
  </wordset>
</xmlfile>