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The quality of a diamond is determined by four factors commonly known as the "4 Cs" -- Carat weight, Clarity, Color, and Cut.
Carat 1 carat = 200 milligrams = 100 points
Color For a diamond to be considered "colorless," the G.I.A. requires that it be a D, E, or F.  However, the D-Z scale is continuous, so the difference between an F and G is very small.  The average color for engagement diamonds in the United States is G to H. 
Clarity There are several grading systems used to describe clarity.   By far, the most popular is the Gemological Institute of America's (G.I.A.) scale, which ranks diamonds as Flawless (FL), Internally Flawless (IF), very very slightly included (VVS), very slightly included (VS), slightly imperfect (SI), and imperfect (I)
Cut http://www.diamondreview.com/tutor/4cs/tutor_4cs_cut5.shtml
Shape Round  Family-centered, dependable, unaggressive.
Oval  Individualistic, creative, well-organized, willing to take chances.
Heart  Sentimental, feminine, sensitive, trusting.
Rectangle/Square   Disciplined, conservative, efficient, honest.
Pear  Conforming, considerate, adaptable.
Marquise  Extroverted, aggressive, innovative, career-centered.
Diamond G.I.A Code and Price:
Carat shape color clarity cut top 10% top 25% Average lower 25% low 10%
0.25 Round D FL VG $1,290.00 $1,290.00 $1,290.00 $1,290.00 $1,290.00
0.25 Round E FL EX $1,189.00 $1,189.00 $1,189.00 $1,189.00 $1,189.00
0.5 Round D FL EX $6,698.00 $5,931.00 $4,149.00 $2,367.00 $1,600.00
0.5 Round D IF EX $5,961.00 $5,257.00 $3,682.00 $2,089.00 $1,403.00
0.5 Round D VVS1 EX $5,727.00 $5,068.00 $3,537.00 $2,005.00 $1,346.00
0.5 Round D VVS2 EX $5,400.00 $4,778.00 $3,333.00 $1,888.00 $1,266.00
                   
0.5 Round E FL EX $6,458.00 $5,717.00 $3,997.00 $2,276.00 $1,535.00
0.5 Round E IF EX $6,316.00 $5,591.00 $3,908.00 $2,225.00 $1,500.00
0.5 Round E VVS1 EX $6,079.00 $5,381.00 $3,760.00 $2,140.00 $1,442.00
0.5 Round E VVS2 EX $5,748.00 $5,088.00 $3,554.00 $2,020.00 $1,360.00
                   
0.5 Round F FL EX $6,101.00 $5,400.00 $3,770.00 $2,139.00 $1,438.00
0.5 Round G FL EX $5,572.00 $4,928.00 $3,432.00 $1,936.00 $1,292.00
0.75 Round D FL EX $11,078.00 $9,804.00 $6,846.00 $3,887.00 $2,614.00
0.75 Round D IF EX $10,912.00 $9,657.00 $6,743.00 $3,828.00 $2,574.00
0.75 Round D VVS1 EX $10,634.00 $9,412.00 $6,571.00 $3,730.00 $2,570.00
0.75 Round D VVS2 EX $10,246.00 $9,068.00 $6,330.00 $3,593.00 $2,414.00
                   
0.75 Round E FL EX $10,692.00 $9,463.00 $6,603.00 $3,754.00 $2,525.00
0.75 Round E IF EX $10,525.00 $9,316.00 $6,505.00 $3,695.00 $2,485.00
0.75 Round E VVS1 EX $10,248.00 $9,070.00 $6,334.00 $3,597.00 $2,419.00
0.75 Round E VVS2 EX $9,860.00 $8,727.00 $6,093.00 $3,460.00 $2,326.00
                   
0.75 Round F FL EX $10,103.00 $8,942.00 $6,264.00 $3,549.00 $2,388.00
0.75 Round G FL EX $9,367.00 $8,289.00 $5,784.00 $3,280.00 $2,202.00
1 Round D FL EX $21,152.00 $18,714.00 $13,048.00 $7,382.00 $4,944.00
1 Round D IF EX $20,701.00 $18,315.00 $12,771.00 $7,227.00 $4,840.00
1 Round D VVS1 EX $19,948.00 $17,649.00 $12,308.00 $6,967.00 $4,668.00
1 Round D VVS2 EX $18,895.00 $16,718.00 $11,661.00 $6,604.00 $4,427.00
                   
1 Round E FL EX $20,298.00 $17,959.00 $12,525.00 $7,090.00 $4,751.00
1 Round E IF EX $18,579.00 $16,439.00 $11,466.00 $6,494.00 $4,353.00
1 Round E VVS1 EX $17,957.00 $15,888.00 $11,083.00 $6,278.00 $4,210.00
1 Round E VVS2 EX $17,086.00 $15,118.00 $10,548.00 $5,977.00 $4,010.00
                   
1 Round F FL EX $18,952.00 $16,769.00 $11,696.00 $6,623.00 $4,439.00