If you successfully completed a diversion program, then you were not considered to have been convicted of DUII. That's what the diversion program is for. So you must still say that you were arrested, if asked that; but you can say that you were never convicted (which seems more likely to be the question asked on an application).
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No, you cannot honestly say you have no criminal arrests. Keep in mind your employer may use a background check service that WOULD locate your prior arrest and DUII Diversion. For your second question there are many answers, including: court error, clerk error, and for some organizations the passage of time (for instance, an Oregon DMV "court print" generally just goes back 10 years). Nevertheless, I strongly suspect that if someone wanted to find out about your old DUII arrest and Diversion (and maybe an Implied Consent license suspension for failing or refusing a breath test?), they could. We live in a society where there really aren't any more secrets. So be honest if the question is truly about any prior arrest, but read the question carefully. If the question is for "conviction," it sounds like a different answer.