A great explanation, which made sense. But now I just have more questions. Like, "I will put a ball in one of these boxes, but I will not tell you which one I put it in. Now from your perspective, Neither the statement 'this box has the ball in it' nor 'this box does not have the ball in it' is true. You have no way of selecting which box I put the ball in." How is this any different?
What I am saying is, I don't see how there is any 'entanglement' there. It's just either in one diamond or the other. It's only our perception that doesn't know which one it is in.
Understanding wave-particle duality and the nature of light is critical to understanding modern physics. The easiest way I know of explaining this is through double-slit experiment.
With the double-slit experiment, you pass light between two slits that are space closely together (on the order of the wavelength of light). If you then place a screen some distance away from the slits, you will observe an interference pattern. Thomas Young used this experiment in the early 1800s and it appeared to settle the issue of nature of light (namely, that it travelled as a wave) in the physics community.
Then in 1905, Einstein wrote a paper which deduced that the photoelectric effect could only be explained using a particle model for light (This is what he won the Noble prize for, not for relativity ...).
The problem is that something can't be a wave and particle. Waves can interfere and pass through each other, but particles cannot (they collide). So, which is light? Since the time of Newton, it was suspected to be a wave, due to interference. Young's double slit experiment was especially convincing.
The modern answer is "It depends, depending on how the experiment is performed." If you repeat Young's interference experiment, but place a detector at each slit, you will not get an inteference pattern, you will get two sharp peaks on the screen centered around each slit. This is what you would expect from a particle model of light (the photon must pass through one slit or the other, it cannot pass through both). Even if you do the experiment so slowly, and only allow single photon at a time to pass through the slit, you will still get an inteference pattern.
In brief, what happens is when you make an observation, the wave function of the particle is said to "collapse" onto one state or the other. But, when we aren't observing, the particle exists in a superposition of all possible states.