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Here, I think you are confusing the overloaded term "thread". As correctly pointed out by other answers, a thread usually refers to a "software" concept. But sometimes it is also used as a "hardware" concept. When a "core" has two "threads" (like in many new Intel chips), it means that the core can run two parallel threads, as if there were two cores. This is, however, usually called hyperthreading.
 
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