"The stars sparkled like diamonds" is an example of a simile. A simile compares two different things using the words "like" or "as." In this case, the stars are being compared to diamonds using "like."
It is not personification, as that would involve giving human traits to non-human entities, and it is not a metaphor, which would imply that one thing is another without using "like" or "as."
So, the correct answer is simile.
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