"God made the natural numbers; all else is the work of man." Leopold Kronecker
Level B2 crosses a real threshold: formulas replace words. Peano's axioms turn "number" from an intuition into nine precise lines; Cantor's naive set theory turns "collection" into a paradise — though, as an old anonymous saying about set theory goes, it's "a paradise with plenty of dark cellars," and Russell's paradox is the darkest of them. The chapter's answer is hereditarily finite sets: a sufficiently rich, paradox-free universe built from nothing but $\emptyset$.
In the late 19th century, mathematics needed a rigorous foundation for something everyone thought they already understood — the natural numbers. Giuseppe Peano's answer, in 1889, was to name the smallest set of undefined primitives that could carry the whole edifice: zero, and the operation "successor of." Everything else — addition, multiplication, order — gets defined recursively on top, and proved correct from the axioms alone, never from what a number "obviously" is.
Cantor's set theory, roughly contemporary, took the opposite gamble: instead of a minimal primitive vocabulary, it started from one maximally generous principle — every property defines a set — and built the arithmetic of the infinite on top of it. Both projects are the same instinct as Level A1's alphabet and Level A2's mathematical concept, just aimed at bigger game: define the undefined terms as narrowly and as explicitly as the subject allows.
Peano Arithmetic's axioms are short enough to read in one sitting — and the last one is doing almost all the work:
That last clause is a schema, not a single sentence, precisely because first-order logic can't quantify over "all properties" the way second-order logic can — a limitation with real teeth, since it's exactly why $\mathsf{PA}$ has nonstandard models and can't pin down $\mathbb N$ up to isomorphism the way its second-order cousin can.
For a closer look at that whole ladder of theories — from first-order $\mathsf{PA}$ up through $\mathsf{ACA}_0$ and $\mathsf{Z}_2$ to the set-theoretic $\mathsf{ZFA}$ — see Hierarchy of Second-Order Arithmetic Theories.
Cantor's naive set theory has no such restraint: any property $\mathcal A(a)$ defines a set $\{x\mid\mathcal A(x)\}$. That freedom is what let him build the arithmetic of transfinite cardinals — and it's also what breaks. Define $R=\{x\mid x\notin x\}$. Is $R\in R$? If yes, then by definition $R\notin R$; if no, then $R$ satisfies its own defining property, so $R\in R$. Either way, contradiction — Russell's paradox.
The fix isn't cleverness, it's restraint: stop asking "which property defines a set?" and start asking "starting from a set I already have, which new sets am I allowed to build?" $\mathsf{HF}$, hereditarily finite sets, answers with a short axiom list — pairing, union, power set, separation, regularity — plus, crucially, the negation of the axiom of infinity. The result is a universe where every set is finite, every element of a set is itself finite, and Russell's $R$ simply cannot be built. And because every such set can be coded as a natural number and vice versa, $\mathsf{HF}$ and $\mathsf{PA}$ turn out to describe the very same mathematics in two different dialects.
The first five exercises from the chapter's problem set, from the English edition.
Level B2 has 22 exercises in total, each with a full worked solution in the book's appendix.