Question Of The Day- Three Men and Red & Blue Hats

Inside of a dark closet are five hats: three blue and two red. Knowing this, three smart men go into the closet, and each
selects a hat in the dark and places it unseen upon his head.
Once outside the closet, no man can see his own hat. The first man looks at the other two, thinks, and says, "I cannot tell
what color my hat is." The second man hears this, looks at the other two, and says, "I cannot tell what color my hat is
either." The third man is blind. The blind man says, "Well, I know what color my hat is." How did he know the color of his hat and What color is his hat?