Final answer:
The Donatists formed a separate church in the fourth century, arguing that clergy must be holy and faultless in order to administer the sacraments. Augustine saw this as a schism but was willing to accept the validity of their sacraments.
Step-by-step explanation:
The statement is True. The Donatists formed a separate church in the fourth century, arguing that clergy must be holy and faultless in order to administer the sacraments. Augustine saw this as a schism but was willing to accept the validity of their sacraments in his theology of grace. While the Donatist sect persisted until the seventh century, Augustine's efforts at the Council of Carthage led to their expulsion from the church.