C must be wearing a red hat.
Explanation:
A looks at B and C. The only way A would know what colour hat he was wearing, would be if B and C both had a blue hat on - leaving only red hats remaining. A doesn't know what he is wearing so we know that B and C are not both wearing blue hats.
B looks at A and C and also states that he does not know the colur of his own hat. By the same assumption that we used for A, we know that A and C are not both wearing a blue hat.
Let's assume that C is wearing a blue hat. If this is the case, then B is not wearing a blue hat, otherwise A would know that he is wearing a red hat. B knows this, so if A states that he does not know the colour of his own hat, then B would know that his own hat must be red.
However, since B states that he did not know the colour of his own hat, C must be wearing a red hat.