FL - Flawless
IF - Internally flawless
VVS1-VVS2 - Very very slight inclusions
VS1-VS2 - Very slight inclusions
SI1-SI2 - Slight inclusions
P1-P2-P3 - Inclusions visible to the naked eye
While diamonds are forming in the earth, minerals or fractures appear. These are called inclusions and the position and size of these inclusions can affect the value of a diamond.
Inclusions, which appear as minute crystals, feathers or clouds, are measured on a scale of clarity which ranges from F (Flawless) to P (Pique) based on the visibility of inclusions at a magnification of 10x.
If no inclusions can be seen at this magnification a diamond is termed as Flawless, but truly Flawless diamonds are extremely rare indeed and, obviously, extremely valuable.