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ANSWER:
The front guy knew that he had a blue hat because if his hat was red, one of the other guys would have already knew the color of their hats.
You see, if the middle guy's hat was blue, and the front guy's hat was red, the middle guy would have known that his hat was blue because if it were red, the back guy would would have seen that the only two red hats were taken, so he'd know his hat was blue.
And if the middle guy's hat was red, as I previously stated, the back guy would would have seen that the only two red hats were taken, so he'd know his hat was blue.
You probably don't understand it completely, so read through it again untill you do.
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