In this paper we formulate epsilon substitution method for a theory $\Pi _{2}^{0}$-FIX for non-monotonic $\Pi _{2}^{0}$ inductive definitions. Then we give a termination proof of the H-processes based on Ackermann [1].

A simple cut elimination proof for arithmetic with the epsilon symbol is used to establish the termination of a modified epsilon substitution process. This opens a possibility of extension to much stronger systems.

The paper is a continuation of another paper published as Part I. Now, the case of “n=3” is inferred as a corollary from the Kochen and Specker theorem (1967): the eventual solutions of Fermat’s equation for “n=3” would correspond to an admissible disjunctive division of qubit into two absolutely independent parts therefore versus the contextuality of any qubit, implied by the Kochen – Specker theorem. Incommensurability (implied by the absence of hidden variables) is considered as dual to quantum contextuality. The (...) relevant mathematical structure is Hilbert arithmetic in a wide sense, in the framework of which Hilbert arithmetic in a narrow sense and the qubit Hilbert space are dual to each other. A few cases involving set theory are possible: (1) only within the case “n=3” and implicitly, within any next level of “n” in Fermat’s equation; (2) the identification of the case “n=3” and the general case utilizing the axiom of choice rather than the axiom of induction. If the former is the case, the application of set theory and arithmetic can remain disjunctively divided: set theory, “locally”, within any level; and arithmetic, “globally”, to all levels. If the latter is the case, the proof is thoroughly within set theory. Thus, the relevance of Yablo’s paradox to the statement of Fermat’s last theorem is avoided in both cases. The idea of “arithmetic mechanics” is sketched: it might deduce the basic physical dimensions of mechanics (mass, time, distance) from the axioms of arithmetic after a relevant generalization, Furthermore, a future Part III of the paper is suggested: FLT by mediation of Hilbert arithmetic in a wide sense can be considered as another expression of Gleason’s theorem in quantum mechanics: the exclusions about (n = 1, 2) in both theorems as well as the validity for all the rest values of “n” can be unified after the theory of quantum information. The availability (respectively, non-availability) of solutions of Fermat’s equation can be proved as equivalent to the non-availability (respectively, availability) of a single probabilistic measure as to Gleason’s theorem. (shrink)