To start, we will number the people from 1 to 100, with the person at the back on the line numbered 1, so N can see the hats of people N+1 and N+2. First thing we need to do is have the two people at the back of the line know their hat colours:
First, person 1 volunteers to guess, and guesses the hat colour of person 3. Next, person 2 volunteers to guess and guesses the hat colour of person 4.
The adversary will ensure that both of those guesses were wrong, so now we have a new problem where the back two people know their own hat colour and we cannot afford anybody to guess wrong. Fortunately, they can now see the hat colour of person 5. They use that to decide who guesses next:
If person 5 has a white hat, person 3 guesses what he knows his own hat to be. If person 5 has a black hat, person 4 guesses what he knows his own hat colour to be.
They are no longer transmitting information by what they guess, it is instead done by who makes the guess. Naturally, whatever happens, the line will shift back and you have the two people at the back of the line with full knowledge of their own hat colour. The person at the very back guesses if the next "unknown" hat is white, and the second person from the back guesses if it is black. The solution works by induction, until only two people are left in the line, when they both know their own hat colour and both of them volunteer to guess (letting the adversary helplessly decide how it ends).
If one states the problem differently, so that instead of a "win-loss" scenario there was some sort of bet based on how many you got wrong, this solution also has the advantage that a mistake by one of the players only results in one extra person being wrong, rather than an entire chain.
Actually come to think of it, that would be a better way to word the problem, to minimize the number of people who guess wrong rather than saying outright how many you can afford. When I post the harder version of this problem I might word it that way.
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