 Solution

If $X$ is Hausdorff, every pair $x\ne y$ has disjoint open neighborhoods $U$ and $V$. The rectangle $U\times V$ is an open neighborhood of $(x,y)$ disjoint from the diagonal. Hence every point of its complement is interior, so the diagonal is a closed set.

Conversely, if the diagonal is closed, its complement is open in the product topology. For $x\ne y$, the rectangle-basis property gives open $U\ni x$ and $V\ni y$ with $U\times V$ disjoint from the diagonal. If $z\in U\cap V$, then $(z,z)$ lies in that rectangle, a contradiction. Thus $U\cap V=\varnothing$, giving the Hausdorff separation condition. ConsequentlyThe argument includes spaces with zero or one point, for which both conditions hold.