The Red beret was released as a part of the Treasure Trails Expansion update on 12 June 2014. It is purely a cosmetic item, so it provides no bonuses or stats. It is given as a reward from easy clue scrolls.
The examine option is written in French and translates to, "Do you speak French?" This is likely paid in homage to the fact that berets are widely considered to be the national hat in parts of France.