If any alien sees one of your units, all of them see it. Their intelligence then determines how fast they forget that. Even with an intelligence of zero, they still can remember for one turn. This means if your whole squad is hiding in the same place and an Ethereal with intelligence 0 successfully mind controls any of your units every turn, they can keep making attempts because they can still see your whole squad. They have to fail for an entire turn to forget your squad.
In practice, I find any intelligence value above 2 is essentially infinite: once you've been seen they always know where you are.