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The clarity of a diamond makes reference to the 'purity' or amount / lack of inclusions in the stone. An inclusion is a natural mark formed during the growth process. It is not a blemish or imperfection. In most cases it is an inclusion that aides in the recognition of a genuine diamond separating it from its imitation counterparts.
Most inclusions are so small that they can only be viewed with high magnification.
Flawless (FL) or Internally Flawless (IF) diamonds are without inclusions, and are otherwise considered perfect.
Very Very Slightly Included (VVS1 & VVS2) diamonds have inclusions so miniscule that they are only visible when viewed through a microscope with more than 50 power. Some experts may be able to view these inclusions with a hand lens.
Very Slightly Included (VS1 & VS2) diamonds have inclusions that are easily detected on a microscope and may also be visible using a hand lens.
Slightly included (SI1 - SI2) diamonds are termed "eye clean" as the inclusions are not visible to the naked eye but easily visible with a hand lens.
Imperfect or Pique (I1-I2-I3) diamonds have inclusions that are visible to the naked eye, without any assistance of magnification.
The levels of grading e.g. 1,2,3 are in reference to the severity of the inclusions, which is often defined by their positions within the diamond.
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