How Can an Object Move by Less Than a Pixel Between Two Consecutive Frames?
The frame is 2D Grid which samples the continuous world in Discrete way.  

Leave alone video for a second.
Let's talk about taking a photo of a white paper laid on a black surface.
The photo is taken from above and let's assume there is no lens issues.
Do you expect the end of the paper to end at edge of a pixel of the camera perfectly?  

It won't.
The end of the paper will fall in the middle of a pixel.
Let's say that now this pixel (I leave out the blurring due to limited Frequency Sampling) has 70% White and 30% Black.
Now the camera moves the smallest movement and now the pixel is 30% White and 70% Black.

This is a less than 1 pixel movement.