Problem of the Week

A professor has three red hats and two white hats in a bag.  He puts one hat from the bag on each of three students' heads and covers the bag.  The first two students can see the color of the hats on the other students, but can't see the color of their own hat.  The third student is blindfolded and can't see the color of anyone's hat.  

The first student looks at the two other students hats, thinks a while and says, "I don't know the color of my hat."  The second student hears what the first student says, looks around at the other two students, and then concedes, "I don't know the color of my hat, either."  The last student then says without delay, "I know the color of my hat."

Assuming each student's claim is correct, what is the color of the third student's hat?

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ã2002 Alberto L. Delgado