USAMO 2016 Problem 1

Let $X_1, X_2, \ldots, X_{100}$ be a sequence of mutually distinct nonempty subsets of a set $S$ . Any two sets $X_i$ and $X_{i+1}$ are disjoint and their union is not the whole set $S$ , that is, $X_i\cap X_{i+1}=\emptyset$ and $X_i\cup X_{i+1}\neq S$ , for all $i\in\{1, \ldots, 99\}$ . Find the smallest possible number of elements in $S$ .