Exercise 6.7 in chapter IV of Burris and Sankappanavar's A Course in Universal Algebra starts as follows:
Show that for $I$ countably infinite there is a subset $S$ of the set of functions from $I$ to $2$ which has cardinality equal to that of the continuum such that for $f \not= g$ with $f,g \in S$, $\{i \in I : f(i) = g(i)\}$ is finite.
I don't see how $S$ can have cardinality more than 2: let $f, g, h \in S$, with $f \not= g$ and $f \not= h$ and let $A = \{i \in I : f(i) = g(i)\}$ and $B = \{i \in I : f(i) = h(i)\}$. For $i$ in $I\backslash (A \cup B)$ we have $g(i) \not= f(i) \not= h(i)$, whence $g(i) = h(i)$, since $f(i), g(i), h(i) \in 2 = \{0, 1\}$. But $A$ and $B$ are finite, $I \backslash(A\cup B)$ is infinite. So $g(i) = h(i)$ holds for infinitely many $i$ and we must have $g = h$.
What have I missed? (A redefinition of 2, perhaps?)
I would also be grateful for a reference for what appears to be the goal of this exercise, namely to use an ultraproduct construction to obtain uncountable models from countable ones.