"Diamonds and Rust" is a haunting song, one of the best songs ever written, it is a moving song, full of winter sun and chilly shade, but the melody and the words unveil the serenity, the maturity and the power that Joan Baez felt when she revisited her youthful relationship with Bob Dylan. Here you can watch a video without subtitles of "Diamonds and Rust", next you can find a lesson-plan for B2 students with listening and speaking tasks and the answer key (and the same document in PDF). Some interesting words to be found in the song are: damned, a ghost, robin egg blue, lousy, a booth, the midwest, a cufflink, rust, to burst, to stray, the Madonna, on the half-shell, unharmed, a crummy [hotel], to mingle.
If you want some background information about the song, you can check out the post "Stella: 'Diamonds and Rust' by Joan Baez" written by Elaine Irvine on the NPR affiliated radio station KRUI-FM, from Iowa University, which is suitable for C1 students. On BBC Sounds you will also find an excellent radio documentary about the song, Soul Music: Diamonds and Rust, which has no script and can be recommended for C2 students. Finally, the most ardent fans of Joan Baez and Bob Dylan, can read "Diamonds & Rust, Joan & Bob, 1960's - 1980's", a thorough musical and personal biography published in the Pop History Dig, which is recommended for Experts, that is, for students beyond C2 level.
Below you can watch another video of the song with English subtitles and pictures of their relationship: