riddle

There are three prisoners (Mr. A, Mr. B and a blind man Mr. C) serving their terms in a prison. One day the lady warden, with a basket of five(5) caps calls all the three prisoners and makes an offer. The Warden says “ Today, I am going to give a riddle to the three of you. Here with me are 5 caps , 3 in blue and 2 in red colors. and I shall put one each on your heads. But before I do that I am going to blind fold two of you Mr. A and Mr. B because I do not want both of you to see what color of the caps being put on your heads. For Mr. C,since he is truly blind I would not blind fold him.”She then continues “ once the caps are put on each of you, I shall open your blind folds to allow you to look at your two friends’ heads and try to guess the color of your cap on your head. If you answer correctly then your terms shall be reduced by half but if you do not get it right then your terms shall be doubled and if you do not want to guess then your term shall be as it is ”. She then asked the three prisoners “ Are you all willing to give a try ?” . The three prisoners was excited to participate and they agree to the conditions set.

The prison warden blind folds Mr. A and Mr. B and put one cap on each of the prisoners heads. Then the warden hides away the remaining two caps. Mr.A’s blind foldis opened and he is allowed to look at the heads of Mr. B and Mr. C and asked to guess the color of his cap. Mr. A decides not to take the risk and he replied “ I do not know”. Then Mr. B’s blind fold was opened and he is asked to make his guess while looking at the heads of Mr. A and Mr. C. Mr. B also decides not to commit by saying “ I do not know” . Now comes the turn for Mr. C, he is asked to make his guess and surprisingly he says “ I know the color of my cap “ and his answer is right.

The question is, what is the color of Mr. C’s cap and being blind how does he knows to conclude it correctly