How do we perceive the object as they actually arc?
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Answer:-
This sounds like the standard confusion between resolution and detection. Most journalists get this one wrong.
A star the size of our Sun at a distance of a few light years will subtend an angle of a small fraction of an arc second, unless I've completely lost my ability to do arithmetic. But we can see it easily. Why? Because it's bright, bright enough that when our retina averages all the light received from (say) a little patch of sky one arc minute wide, the patch that has the star in it is much brighter than a nearby patch that contains only very faint stars. It happens that all the light from the bright star is in one even tinier part of that one-minute patch, but our retina doesn't somehow ignore this light just because it all comes from the same place. We see a tiny dot, the tiniest image we can see.
If the star were ten times the size of our Sun, we would still see a tiny dot. Brighter, oh yes, but still as tiny as we can see.
Now, what if we look at a binary star, where two stars orbit each other a few million, or billion, km apart? From a distance measured in light years, both stars will be in the same one arc minute patch, so our retina will average all the light coming from that patch, and we will see a tiny dot, and think we see one star twice as bright. Because our retina averages the light, we will miss the dark gap between the two stars; it will be as if the stars were badly blurred. When good telescopes were developed and we could see stars more crisply, a fair number of stars were found to be binaries, to the surprise of naked-eye observers.
Much the same applies to the ISS and indeed to other artificial satellites (yes, we can see some others if the sky is good and dark, but in most cities and suburbs it isn't). You can tell the ISS is there, because light comes from it. But good luck noticing whether it is made of one piece or two. For that, you'll need a telescope.
You can even try this at home. A piece of white paper and a pencil are enough. Make two small dots on the paper, very close together so that there is not much white between them. Holding the paper at arm’s length, you can just about tell that there are two dots. Now stick it to the wall (or something) and look at it from across the room. I expect you will see one dark dot.