using System;

using System.Xml;

​

namespace Rextester

{

    public class Program

    {

        public static void Main(string[] args)

        {

           String xmlstring = "<?xml version=\"1.0\" encoding=\"utf-8\"?> <settings> <source>H:\\Źródło</source> <target>H:\\Cel</target> </settings>";

           XmlDocument doc = new XmlDocument();

            doc.LoadXml(xmlstring);

            XmlNode sourceNode = doc.DocumentElement.SelectSingleNode("/settings/source");

            string source = sourceNode.InnerText;

            Console.WriteLine(source);

            XmlNode targetNode = doc.DocumentElement.SelectSingleNode("/settings/target");

            string target = targetNode.InnerText;

            Console.WriteLine(target);

        }

    }

}