I don't understand this! I thought that Zeitung being a feminine word meant that Sie must meant She instead of They. Very confusing
Okay I think I've got it. I should be looking for the verb, not the noun. Because it is "haben", Sie must mean They - if it was "hat" then it would be She?
sie hat eine Zeitung or sie habben eine Zeitung
the verb is the clue whether sie is she or they.
Oh, sie can mean you (formal) as well, the 's' is capital letter.
Note: please correct me if im wrong.
yes, if you want to say "you have" (polite) it looks exactly the same like "they have" except of the fact that in you-case "S" is capital. Sie haben = you have sie haben = they have But if it is the first word of sentence, of course you cannot see the difference.
When speaking, the only way to distinguish would be through context then?
If one is unsure would it be acceptable to clarify by asking "Ich?" and they'd respond "Nicht, sie" or "Ja"? If not, how is ambiguity handled?
It's handled exactly like that.
A more formal version of "ich?" would be "Meinen Sie mich?"/"Reden Sie mit mir?".
Anyway, this problem shouldn't occur as often as it might seem right now.