We have Mitsubishi mini splits at home and out on Welch, a great product. They could solve your entire problem.
Some thoughts:
If you still go for forced hot water (oil or gas fired) on the 1st floor then consider adding a basement zone rather than a pellet stove. One less appliance. Now matter what, use mini splits at least on the 2nd floor. Reliable heat and A/C in the summer.
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