I just re-read my answer.. it's a puzzle itself..
I'll answer it again, with names..
two friends (james and micheal) married the other's mother, so micheal married james' mother "monica" and james married micheal's mother "Veronica".. now, Veronica had a baby, (let's call him John)..
now, this John is James' son, right.. but he's also micheal's brother..(same mother).. now read the puzzle again,.. that woman who was holding the baby is monica.. she was holding Veronica's son.. her husband's (micheal) brother.. and her son's (james) son..
GOT IT..
