I'm struggling to grasp the meaning of $\mathbb{Z}_q[X]/(X^N + 1)$
Apologies if I'm coming at this at an overly basic level - I'm not sure where in your mathematical studies you are, and so I thought it would be better to underestimate your initial understanding...
This stands for a specific mathematical ring, that is, a set of values with addition and multiplication operations defined (that meet certain properties).
To see what ring it is, let us break it down:
That's the ring of integers modulo $q$. That is, it is the integers, except that we consider two integers $a, b$ to be the same if $a-b = kq$ for some integer $k$.
We normally represent values in such a ring as values between 0 and $q-1$; however the paper specifically cites that they will be using the alternative representation of values between $-\lfloor q/2 \rfloor$ and $\lfloor q/2 \rfloor$. This alternative representation doesn't change the mathematical properties of the ring; however it may be important if they do operations that depend on the specific values.
This is the ring of polynomials over a single artificial variable $X$, where all the coefficients of the polynomial are members of the ring $\mathbb{Z}_q$.
Members of this ring include $X^2 + 2 \cdot X + 1$ and $X^{19} - 7 X^{5}$ (given that $1, 2$, and $-7$ are members of $\mathbb{Z}_q$.
Addition and multiplication in this ring is defined pretty much like addition and multiplication of polynomials over the reals, except that coefficient computations are done using $\mathbb{Z}_q$ operations.
- $\mathbb{Z}_q[X]/(X^N + 1)$
This is the above ring modulo the polynomial $X^N+1$. That is, we consider two polynomials $P(X)$ and $Q(X)$ to be the same if $P(X) - Q(X) = R(X) \times (X^N+1)$ for some polynomial $R(X)$ in $\mathbb{Z}_q[X]$.
With this ring, for any polynomial $P(X)$, there will be a unique polynomial $Q(X)$ of degree at most $N-1$ where $P(X) = Q(X)$ (using the above criteria). It is easy to find this polynomial $Q(X)$, and so is usually used as the canonical representation.
As mentioned in the comments, such a ring is called a cyclotomic ring, and has a number of interesting properties I won't delve into - this should give you both a taste and a direction to do more study, should you want to.