Answer:
1. When light passes from a more dense to a less dense substance the light is refracted.
2. The diamond would act like a prism and make rainbows.
3. You observe all of these pretty much every day. Like if you notice how on a glass building it reflects the sunlight and some other things around it. Then another example could be just shining a flash light in a room.
I do FLVS and I got a 100 on this assignment so I hope it helped a little :)