Hey Meredith,
Yes, it's possible and much more manageable with only 3 options between them. Using forms 2.0, you would set up visibility rules for the second two questions, but they would always be showing. Where the visibility rules come into play are the selections available. So for your example, in question 1 they select green. Then, question 2 would have the visibility rule set up like this:
If Color is Green, the options would be Red and Blue. If the Color is Red, the options would be Green and Blue. Where it gets tricky is accounting for question 1 in the question 2 answer. You could do this by changing the format of the answer in question 2 to show the same answer, but have the system see it differently. Again, going back to your example, I select Green the first time. That means red and blue are still available. But if I select blue the second time, the third answer can be red or green because there is no way for the system to know if green or red was selected the first time because the form hasn't been submitted. But, if you change the format of the answer, you can tell the system which was selected first.
Here is an example of a possible flow:
Question 1: Green
Question 2: BLUE
Question 3: Red (because blue was capitalized)
OR
Question 1: Green
Question 2: red
Question 3: Blue (because red was in lower case)
What if I selected Blue first....
Question 1: Blue
Question 2: green
Question 3: Red (because green was lower case)
OR
Question 1: Blue
Question 2: RED
Question 3: Green (because red was capitalized)
Does that make sense? I know that this is probably hard to follow, so let me know if you have any follow up questions! It's pretty difficult to type out...