Inside a dark room there were 5 hats, three blue and two red. Three people walked into the room, each grabbed a hat and placed it UNSEEN on his head. All know there were three blue hats and two red hats in the dark room.

Once out of the room, NO ONE can see his own hat. The first man looked at the other two, thought for a while, and said Gee, I dont know the color of my hat. The second man heard this. He looked at other peoples hats, paused for a moment, and said me neither. The third man is blind. He heard the first two men, and said immediately I know the color of my hat.

What is the color of the third mans hat? And how did he know? Please provide your reasoning