Intellij IDEA reports errors with some valid python 3 syntax

Using Python plugin 5.0.2.143.121 in IntelliJ IDEA Ultimate 15.0.3 #IU-143.1821

I have an anaconda environment set as my project SDK, and I am able to get code to run successfully, the console to run successfully, etc.  But there are Python 3 specific syntaxes which keep getting flagged in the editor.  Function annotations, for example, or the single * argument to indicate keyword-only arguments.

In PyCharm I was able to get these problems to go away by designating the language version as Python 3.  But I cannot figure out how to do that in IntelliJ IDEA.  In the project language level box, I can only select different Java versions.

Is there something I am missing which would allow me to take care of this?  I'd hate to find out that it was necessary to also buy PyCharm to get full Python 3 functionality.