Final answer:
Viewpoint 1 is correct, and Viewpoint 2 contains a fallacy. The correct behavior of the Euclidean partition function ZE(β) in the context of a Z₂ symmetry in a 1+1-dimensional QFT at finite temperature on a circle is ZE(β) = 2 + O(e^(-βM)), where M is the gap.
Step-by-step explanation:
Viewpoint 1 correctly considers the theory's quantization on the line, acknowledging the superselection sectors H=H0⊕H1. This leads to ZE(β) = 2 + O(e^(-βM)), which accurately accounts for the ground state degeneracy and the effect of excitations over each vacuum state. However, Viewpoint 2's reasoning regarding quantization on the circle fails due to the incorrect assumption that the theory on a finite circle corresponds to a QFT at zero temperature in finite volume, disregarding the impact of finite temperature on a compactified dimension. This approach overlooks the subtleties introduced by the thermal circle and erroneously concludes ZE(β) ∼ 1, considering only the ground state contribution in the limit of infinite circumference. In reality, the limit process applied in Viewpoint 2 fails to capture the essential aspects of finite temperature, leading to an incorrect evaluation of the partition function.
In essence, the fallacy lies in assuming that the finite volume of the circle suppresses spontaneous symmetry breaking at finite temperature, disregarding the influence of temperature on a compact dimension. The correct understanding emerges from acknowledging the distinct implications of quantization on the line versus the circle in the context of finite temperature effects on symmetry breaking. This crucial distinction accounts for the observed discrepancy in the behavior of ZE(β).