How to add image in Flutter

I am developing Flutter app for the first time. I have an issue adding an image. I have a following questions:

1. Where to create an images folder?
2. Where to add assets tag in pubspec.ymal?
3. Is there any assets folder needed for this?

What I tried:

 assets:
    - images/lake.jpg

inside pubspec.ymal :

Full file :

name: my_flutter_app
description: A new Flutter application.

dependencies:
  flutter:
    sdk: flutter

  cupertino_icons: ^0.1.2

dev_dependencies:
  flutter_test:
    sdk: flutter

flutter:
  uses-material-design: true,
  assets:
    - images/lake.jpg

Error log :

#/properties/flutter/properties/uses-material-design: type: wanted [boolean] got true,
Error detected in pubspec.yaml:
Error building assets

FAILURE: Build failed with an exception.

* Where:
Script '/home/abc/Downloads/flutter/packages/flutter_tools/gradle/flutter.gradle' line: 435

* What went wrong:
Execution failed for task ':app:flutterBuildDebug'.
> Process 'command '/home/abc/Downloads/flutter/bin/flutter'' finished with non-zero exit value 1

* Try:
Run with --stacktrace option to get the stack trace. Run with --info or --debug option to get more log output.

* Get more help at https://help.gradle.org

BUILD FAILED in 1s
Finished with error: Gradle build failed: 1

My main.dart code :

// Copyright 2017 The Chromium Authors. All rights reserved.
// Use of this source code is governed by a BSD-style license that can be
// found in the LICENSE file.

import 'package:flutter/material.dart';
// Uncomment lines 7 and 10 to view the visual layout at runtime.
//import 'package:flutter/rendering.dart' show debugPaintSizeEnabled;

void main() {
  //debugPaintSizeEnabled = true;
  runApp(new MyApp());
}

class MyApp extends StatelessWidget {
  @override
  Widget build(BuildContext context) {
    Widget titleSection = new Container(
      padding: const EdgeInsets.all(32.0),
      child: new Row(
        children: [
          new Expanded(
            child: new Column(
              crossAxisAlignment: CrossAxisAlignment.start,
              children: [
                new Container(
                  padding: const EdgeInsets.only(bottom: 8.0),
                  child: new Text(
                    'Oeschinen Lake Campground',
                    style: new TextStyle(
                      fontWeight: FontWeight.bold,
                    ),
                  ),
                ),
                new Text(
                  'Kandersteg, Switzerland',
                  style: new TextStyle(
                    color: Colors.grey[500],
                  ),
                ),
              ],
            ),
          ),
          new Icon(
            Icons.star,
            color: Colors.red[500],
          ),
          new Text('41'),
        ],
      ),
    );

    Column buildButtonColumn(IconData icon, String label) {
      Color color = Theme.of(context).primaryColor;

      return new Column(
        mainAxisSize: MainAxisSize.min,
        mainAxisAlignment: MainAxisAlignment.center,
        children: [
          new Icon(icon, color: color),
          new Container(
            margin: const EdgeInsets.only(top: 8.0),
            child: new Text(
              label,
              style: new TextStyle(
                fontSize: 12.0,
                fontWeight: FontWeight.w400,
                color: color,
              ),
            ),
          ),
        ],
      );
    }

    Widget buttonSection = new Container(
      child: new Row(
        mainAxisAlignment: MainAxisAlignment.spaceEvenly,
        children: [
          buildButtonColumn(Icons.call, 'CALL'),
          buildButtonColumn(Icons.near_me, 'ROUTE'),
          buildButtonColumn(Icons.share, 'SHARE'),
        ],
      ),
    );

    Widget textSection = new Container(
      padding: const EdgeInsets.all(32.0),
      child: new Text(
        '''
Lake Oeschinen lies at the foot of the Blüemlisalp in the Bernese Alps. Situated 1,578 meters above sea level, it is one of the larger Alpine Lakes. A gondola ride from Kandersteg, followed by a half-hour walk through pastures and pine forest, leads you to the lake, which warms to 20 degrees Celsius in the summer. Activities enjoyed here include rowing, and riding the summer toboggan run.
        ''',
        softWrap: true,
      ),
    );

    return new MaterialApp(
      title: 'Flutter Demo',
      home: new Scaffold(
        appBar: new AppBar(
          title: new Text('Top Lakes'),
        ),
        body: new ListView(
          children: [
            new Image.asset(
              'images/lake.jpg',
              width: 600.0,
              height: 240.0,
              fit: BoxFit.cover,
            ),
            titleSection,
            buttonSection,
            textSection,
          ],
        ),
      ),
    );
  }
}

I am referring to this tutorial https://flutter.io/tutorials/layout/

Also, I want to ask if there are any tools for a clean rebuild in a flutter as I can't find any options for this.

I think the error is caused by the redundant ,

flutter:
  uses-material-design: true, # <<< redundant , at the end of the line
  assets:
    - images/lake.jpg

I'd also suggest to create an assets folder in the directory that contains the pubspec.yaml file and move images there and use

flutter:
  uses-material-design: true
  assets:
    - assets/images/lake.jpg

The assets directory will get some additional IDE support that you won't have if you put assets somewhere else.