Since we are heads up, we can pretty much always c-bet. In this case, I think its six of one and half dozen of the other.
I'm fine with a c-bet, I'm fine with checking it back.
There is more or less a 50% chance V has no diamond and if that is the case he isn't c/r blasting us. Even if he flopped a set he is going to get tiny testicles on a monotone board while he hopes the board pairs and the turn bricks. I can't really see too many hands V can have in his range that sees the flop and gets a woody in anticipation of c/r'ing us. The overwhelming majority of his value range is c/c the flop and praying for a brick turn.
So personally, I like c-betting this flop. We take the pot down easily more than 50% of the time and even when V has a value hand he is c/c'ing 95% of the time while he prays for a brick turn.
Then he will check turn and we can check back turn and hope to bink on river
as played, easy call on turn and hope to bink river. If we bink on river, bet 1/3rd pot.
EDIT: Okay, I just read the clarification, you basically messed up the action in the OP and we are up against the young asian kid who likes to make moves. If that is the case, then I can get behind checking back the flop and basically just drawing. Whenever we are in a situation where we have very little if any fold equity but are drawing to the nuts, then its best to just draw.