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Diamond Color
Color refers to the level of saturation at which a diamondís body color approaches colorlessness. Diamonds are graded into a scale of colors ranging from D to Z, D being colorless,
to Z having the most saturation of color.

Diamond Clarity
This refers to the level of imperfections or inclusions in a diamond. Diamonds are graded into a scale of clarity ranging from flawless to I3 depending on how large the inclusions are and how easily they can be seen. Below is a illustration on
how these inclusions would look under a 10x magnification.
A diamond cut to the proper proportions will allow light to enter the facets, become refracted, and exit through the top with great brilliance. Diamonds cut too shallow or too deep lose the light through the sides and bottom. In order for a diamond to attain optimal light dispersion it should carry a cut grade of Very Good or higher. When a diamond is cut to excellent proportions, it produces the maximum luster and fire.

Diamond Anatomy