Burnside lemma says that the number of orbits of a finite group on a finite set is
Indeed, double-count the set . Counting first by gives the numerator. Counting first by gives ; each orbit contributes by the orbit-stabilizer theorem, proving the formula.
Let be the character of the permutation representation. Then
is, by Burnside's lemma, the number of orbits on . A two-transitive group action has exactly two such orbits: the diagonal and the ordered pairs of distinct points. Hence . Transitivity also gives . If is its irreducible character decomposition, then , so exactly one nontrivial irreducible character occurs, with multiplicity one. Thus the permutation character has precisely two distinct irreducible summands.