Step 1: Simplify the given expression.
We know that
\[
\cos^2\theta - \sin^2\theta = \cos 2\theta
\]
So, the given expression becomes
\[
(\cos^2\theta - \sin^2\theta)\sec 2\theta = \cos 2\theta \cdot \sec 2\theta
\]
Since \( \sec 2\theta = \dfrac{1}{\cos 2\theta} \), we get
\[
\cos 2\theta \cdot \sec 2\theta = 1
\]
Step 2: Use the condition on \( \theta \).
The condition \( \tan^2\theta \neq 1 \) means
\[
\tan\theta \neq \pm 1
\]
This happens when
\[
\theta \neq \frac{\pi}{4}, \frac{3\pi}{4}, \frac{5\pi}{4}, \frac{7\pi}{4}, \frac{9\pi}{4}, \frac{11\pi}{4}, \frac{13\pi}{4}, \frac{15\pi}{4}
\]
At these values, \( \cos 2\theta = 0 \), so \( \sec 2\theta \) is not defined. These are already excluded in set \( P \).
Hence, for every valid \( \theta \in P \), the expression is always equal to
\[
1
\]
Step 3: Compare with \( a^2 \).
Now the set definition gives
\[
a^2 = 1
\]
Since \( a \in \mathbb{Z} \), the possible integer values of \( a \) are
\[
a = 1 \quad \text{or} \quad a = -1
\]
Step 4: Find the number of elements in \( S \).
Therefore,
\[
S = \{-1, 1\}
\]
So,
\[
n(S) = 2
\]