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"Ione's exact wording was, 'I'll Cooperate if I think you'll Cooperate'.  If Ione doesn't think she can read Tonia, then even if Tonia says 'I'll Cooperate', Ione won't think Tonia will Cooperate, and Ione won't Cooperate, even though she was being truthful in her promise.  But if Ione does think she can read Tonia, and Tonia can read Ione, Ione can solve that just by adding, 'I think I can read you'.  Which, in their real discussion, Ione did in fact say."

Version: 2
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"Ione's exact wording was, 'I'll Cooperate if I think you'll Cooperate'.  If Ione doesn't think she can read Tonia, then even if Tonia says 'I'll Cooperate', Ione won't think Tonia will Cooperate, and Ione won't Cooperate, even though she was being truthful in her promise.  So Tonia also has to believe that Ione believes she can read her.”

”But if Ione does think she can read Tonia, and Tonia can read Ione, Ione can solve that just by adding, 'I think I can read you'.  Which, in their real discussion, Ione did in fact say."