Three college toppers are summoned by the inspecting faculty. To identify the best from them, the faculty takes them into a room and places one hat on each of their heads. Now all of them can see the hats on other’s heads but can’t see his own. There are two colored hats – green and red.

Now the faculty announces that he had made sure that the competition is extremely fair to all three of them. He also gives them a hint that at least one of them is wearing a red hat. Now the first one who is able to deduce his own hat color will be awarded the most intelligent student of all award. After a few minutes, one of them raises his hand and is able to deduce the color correctly.

How?