To find the critical angle between diamond (n=2.42) and water (n=1.33), Snell's law is applied at their interface. The critical angle occurs when the angle of refraction in water is 90 degrees, meaning the light is on the verge of total internal reflection. The equation to use is n_i * sin(θ_c) = n_r * sin(90°), simplifying to θ_c = arcsin(n_r / n_i). Substituting the indices of refraction gives the critical angle for diamond to water, which is approximately 33 degrees. Understanding this setup is essential for solving the problem accurately.