Lois,
It DOES appear to have two nostrils, but the upper pair are actually sub-orbital pits, which have nothing to do with the fish's sense of smell. Look closely, and you'll see that the upper pits are shallow. There are a few Scorpaeniformes that exhibit this morphological trait. Good spotting tho! 
You don't come across this species very often, and we found this one in one of our LFS for about $15 or so...score one for us! Another interesting thing about this fish and waspfish in particular is that it's color varies quite a bit at times. Some days, it's very light, others dark, and still others, the red spotting really comes out.
