Got it. Het knows the colour of his own hat because none of the two other guys raised his hand.

Suppose you're wise man #1. You're looking at #2 and #3 sitting there with their red hats on. They can see each other's red hats, too. They're bound to raie their hands if they see one of the others wearing a red hat. Now, if they don't raise their hands, that means only one thing: they see two guys wearing red hats, and you're one of those two.

Do I get a badge now?