1. How would you deal with a user who produced a steady stream of valuable answers, but tends to generate a large number of arguments/flags from comments?

I would play by the book. I would delete inappropriate posts and handle issues that have been flagged by the community. Stack Exchange have good guidelines to follow in terms of moderation. Plus moderation is a team effort - Arduino SE already has a good moderation team as well as the wider moderation community.

2. How would you handle a situation where another mod closed/deleted/etc. a question that you feel shouldn’t have been?

Clear communication. They did that action for a reason. If the content is good but the post has issues, all the user has to do is resubmit the question/answer/comment without the problematic part.

3. In your opinion, what do moderators do?

Moderators deal with the daily issues which allows the Stack Echange to run smoothly for its visitors.

4. A diamond will be attached to everything you say and have said in the past, including questions, answers and comments. Everything you will do will be seen under a different light. How do you feel about that?

I'm not bothered. I treat every post/comment/answer/question with respect.

5. In what way do you feel that being a moderator will make you more effective as opposed to simply reaching 10k or 20k rep?

I would rather gain the reputation. :)

I am not going to be the best moderator out there but I will try.