The solution is very neat.The villagers of both village will always say that they belong from Village A.If third villager is saying that second one is from Village B then he must be telling lie and must belong from Village B.

This is a very easy question.Note that anyone living in any village cannot say that he is from village B, even who actually lives in village B will have to lie and say that he is from village A which means second person cannot say he is from village B and so third person is lying and is from village B.

My solution using C++

 #include<iostream.h>
 int main()
 {
 cout<<"Which of you nutbags selected Village C?"<<endl;
 cout<<"First of all, notice that it is a computer science question."<<endl;
 cout<<"This proves Anthony Teo is From village B\n"<<endl;
 cout<<"Ok here's the solution - \n\n"<<endl;
 cout<<"Just ignore first villager.\n"<<endl;
 cout<<"Case 1\nIf second villager is from village A, he will always tell TRUTH."<<endl;
 cout<<"So, he will say he is from village A.\n"<<endl;
 cout<<"Case 2\nIf second villager is from village B, he will always tell LIE."<<endl;
 cout<<"So, he will say he is from village B.\n"<<endl;
 cout<<"In both cases, second villager says he is from village A\n"<<endl;
 cout<<"But third villager says second villager said he was from village B"<<endl;
 cout<<"So, third villager is lying.\n\nTherfore he belongs to Village B\n"<<endl;
 cout<<"As of first villager, he could be from any village"<<endl;
 cout<<"But I am from village A. Cheers.";
 return(0);
 }

The 2nd villager just mumbled so the people around him couldnt hear. The 3rd villager accused him of saying that he is from village B. thus the 3rd villager was lying

we are concerned about the third villager........ so let us see his case first! suppose he's telling the truth and really the second villager had said that he belonged to village b . .....but if he was really from village b why would he tell the truth! since anybody who belongs to village b is bound to lie. ............. and if he's lying ..... dat means he isn't from village b and hence belongs to village a....... which is impossible since no resident of village a ever lies........... as such, there no doubt about the fact that the third villager was lying and the second did not say that he belonged to village b ........ therefore the third villager is a lier and is bound to be a resident of village b!

The villagers of B always say that they are from village A since they always lies So,the third villager lied Hence he is from village B

It doesn't matter that 1st and 2nd villagers belongs to which village. it just matters that 3rd one belong to which one. The third villager replied: "2nd villager said that he was from Village B.". the point to be noted is that, if 2nd villager is from B, then he should lie, & say that he is from A. & if he is from A, then he should tell truth, & say that he is from A. So, if 2nd villager is from A or B, in both cases he will say that he is from A. so, why the 3rd villager said that "2nd villager said that he was from Village B." it means, 3rd is must be lying. & if he is lying, then he is from village B. that's it..

If the second villager was from village a, he would tell that he is from village a and if he was from village b, he would lie and say he is from village a. So in any case second villager would say he is from village a. But third villager said that second villager is from village b. That means he is lying. So the third villager is from village b.

Forget About Village A and associated Villagers...They will always say the truth hence not troublesome. 3rd Villagers says that 2nd Villager Said "he was from B". Now any Villager from B can never say that he is from Village B, as he would be speaking truth. So 2nd Villager is from A and 3rd Villager is lying. Hence 3rd Villager is from B

Assume Villager 3 is from Village A. Since he always tells the truth, 2nd villager is from Village B. But Since Villagers from B always lie, the 2nd villager couldn't have said the truth and we arrive at a contradiction.

Now assume 3 is from B. It means that 2nd villager said he was from A and 3 lied and said that 2 was from B. No contradictions .

'he said that he was from village B' this statement it self is a lie because none of them can say that 'i am from village B'.

From Village B. Third Villager told na on the last line... '

The second villager words were not clear, when the third one was asked about the second he said that the second from village B, so the third one lied because he didn't hear the second one but he pretended that he heard the second one, so the third one from village B.

Lets assume they are from village A , then villager 1 tells the truth , but either one of villager 2 or villager 3 lies. If they are from village B , then villager 1 lies , villager 2 lies about coming from A , villager 3 lies what villager 2 said. Hence they are all from village B.