probably yes, your graphics card can handle Diablo III, but at very low graphics settings.
Intel HD graphics is not a real GPU: it is an integrated graphics card, which is comparable with a low-end GPU.
It does not use dedicated video RAM: it uses system memory as graphics memory (this is called "shared video RAM")
For example, if you have a PC with 4GB of RAM and an Intel integrated graphics card, some of your 4GB are used by the Intel integrated graphics card as "video RAM". You can choose the amount of RAM to dedicate to the integrated graphics card from the BIOS.