>
>Assume Ted is blue and both Ned and Fred are Red. If Ned is Red, it would have said "I am Blue" and that makes Fred statement true(which means he is not Red).
>
>So if Ted is Red then Ned and Fred are Blue.
>
>Geno Prida

If Ned is Red he always lies so therefore he would say. "I'm blue."
If Ned is Blue he always tells the truth so he would say, "I'm blue."

Ned had to say he's Blue regardless of what color he was.

Therefore Fred's first statement, "He said he's Blue." is a true statement. Which means he would have to be Blue. Now all following statements are true. The 2nd statement "That's True." means that Ned is also blue. The 3rd statement, "I'm blue True." is redundant.

Therefore you would rescue both.

Dan