 Solution

Every automorphism fixes zero and one, and preserves sums, products, negatives and multiplicative inverses of nonzero elements. Consequently elements fixed by every member of $G$ are closed under these operations and form a field. Artin fixed-field theorem gives $\boxed{[L:L^G]=|G|}$ for a finite automorphism group.

Here $\mathbb{Q}(t)$ is the fraction field of $\mathbb{Q}[t]$, with $t$ transcendental; its elements are fractions of rational-coefficient polynomials, with nonzero denominator and the usual equality by cross-multiplication. Substitution of $1-t$ or $1/t$ defines an automorphism, each its own inverse. With $\sigma \tau$ meaning first apply $\tau$ to a field element and then $\sigma$, its image on $t$ is $1/(1-t)$. Iterating gives $(t-1)/t$ and then $t$, so its order is three. The relations reduce every word to at most six possibilities, and the six resulting images areThey are distinct rational functions, so the group has six elements. Its faithful permutation action on $\{0,1,\infty \}$ identifies it with $\boxed{S_3}$.

For the first fixed field put $u=t(1-t)$. It is fixed by $\sigma$, and $t$ satisfies $X^2-X+u=0$ over $\mathbb{Q}(u)$. The degree is exactly two because the nontrivial automorphism $\sigma$ fixes that field. The fixed-field degree is also two, soFor the inversion put $v=t+1/t$. It is fixed and $t$ satisfies $X^2-vX+1=0$. The same degree argument givesThe source requests polynomial generators in both cases. The second requirement is impossible. If a nonconstant polynomial $p(t)=a_d{t}^d+\cdots +a_0$ were fixed by inversion, $p(t)=p(1/t)$ would equate a Laurent polynomial with highest exponent $d>0$ to one with no positive exponent, a contradiction. Thus the only polynomial invariants of inversion are constants, which cannot generate its nonconstant fixed field. The fixed field of inversion in a rational function field therefore has the second displayed rational-function generator.