Step 1: Structure of diamond.
In diamond, each carbon atom is sp\(^3\) hybridized and forms four strong covalent bonds with four neighbouring carbon atoms.
Step 2: Formation of rigid 3D network.
These covalent bonds extend throughout the crystal forming a rigid three-dimensional tetrahedral lattice.
Step 3: Reason for hardness.
Since every carbon is strongly bonded in all directions, it is extremely difficult to break the structure, hence diamond is very hard.
Step 4: Conclusion.
Thus hardness is due to strong covalent bonding of all four valence electrons.
Final Answer:
\[
\boxed{\text{(A) all four valence electrons form strong covalent bonds}}
\]