Waves divide into two families. Mechanical waves, such as water waves, sound and waves on a string, are oscillations of the particles of a material medium, so they cannot exist without that medium. Electromagnetic waves, such as light, radio waves and X-rays, are oscillations of electric and magnetic fields, which need no particles at all and therefore travel through a vacuum at \(3.0\times10^{8}\,\mathrm{m\,s^{-1}}\). This is the general difference between water waves and light waves: the medium of propagation each requires.
The evidence for it is everyday. Sunlight reaches the earth across the emptiness of space, whereas a water wave dies out the moment the water ends at a shoreline, and a ripple tank produces no waves when the water is drained. This is also why light from distant stars reaches us but their sound never does.
The other suggested differences do not hold. Both kinds of wave can be reflected, water waves from a barrier in a ripple tank and light from a mirror, and both can be diffracted, water waves spreading through a narrow gap between barriers and light spreading at the edge of an obstacle or through a fine slit. The direction of vibration is not a general point of difference either, because water surface waves and light waves are both transverse: the displacement is perpendicular to the direction of travel in each case. In the examination, when asked to distinguish two waves, first classify each as mechanical or electromagnetic, since that single classification decides the need for a medium, the possible speeds, and whether the wave can be polarised.