There are three red hats and two black hats on a hatstand.
Melba, Fran, and Brent line up in a single file line, and the mad Hatter places a hat on each person’s head and tosses the rest into a box where no one can see them.
The Mad Hatter takes off Brent's blindfold. Brent, who could see Fran’s hat and Melba’s hat, says,
“I don’t know what color my hat is.”
The Mad Hatter takes of Fran's blindfold. Fran, who could only see Melba’s hat, says, “I heard what Brent said, but I don’t know what color my hat is.”
As the Mad Hatter moved to take off Melba's hat, she said, “I don't need you to take off my blindfold. I know what color my hat is.”
What color is Melba’s hat and how does she know?