Latin-1 source code was not being properly decoded when passed through
compile(). This was due to left-over special-casing before UTF-8 became the
default source encoding.

Closes issue #3574. Thanks to Victor Stinner for help with the patch.
diff --git a/Misc/NEWS b/Misc/NEWS
index 0f47afb..ede8e52 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -15,6 +15,8 @@
 Core and Builtins
 -----------------
 
+- Issue #3574: compile() incorrectly handled source code encoded as Latin-1.
+
 - Issues #2384 and #3975: Tracebacks were not correctly printed when the
   source file contains a ``coding:`` header: the wrong line was displayed, and
   the encoding was not respected.