Take N=3. Flags 1, 2, 3 are on the table and three players take part. The first player turns over every flag whose number is a multiple of 1, so all three flags, blue side up at the start, end up white side up. The second player turns over flag 2, the only multiple of 2, leaving the flags white, blue, white. The last player turns over flag 3, the only multiple of 3, leaving them white, blue, blue. One flag lies white side up.