The paper can be found https://arxiv.org/pdf/1802.06002.pdf here. They say that for each binary label function $l(z)$ where $l(z)=−1$ or $l(z)=1$, there exists a unitary $U$ such that, for all input strings $z=z_0z_1...z_{n−1}$ (where each $z\in \{−1,1\}$), The predicted output is defined as, $$<z, 1|U^\dagger ( θ )Y_{n+1}U( θ )|z, 1>$$ where $Y_{n+1}$ is the Pauli y operator on the last qubit. loss is defined as $$ loss(~θ, z) = 1 − l(z)\langle z, 1|U^\dagger ( θ )Y_{n+1}U( θ )|z, 1>$$
In Representation section it is said that, Before discussing learning we want to establish that our quantum neural network is capable of expressing any two valued label function. There are 2n , n-bit strings and accordingly there are 22n possible label functions l(z). Another operator is defined as following, $U_l |z, z_{n+1}\rangle = e^{il(z) π X_{n+1}/4}|z, z_{n+1}\rangle$ Further $l(z)$ is obtained as following, $$ \langle z, 1|U^\dagger_l Y_{n+1}U_l|z, 1\rangle = l(z)$$ I do not understand what $l(z)$ exactly is(true label I believe) and how there are 22n possible functions for it.