Original answer to original question:
It is not true (perhaps you are missing a condition?)
Define the function $f:\mathbb{R}\rightarrow\mathbb{R}$ as follows: $f(x) = \left\{ \begin{array}{lr} e^x & : x <0\\ |x-1| & : x \geq 0 \end{array}\right.$
Then $f$ is continuous, bounded below, $S=\mathbb{R}$ is closed, $\inf_{x\in S} f(x) = 0$, and $x=1$ is the unique minimizer.
Now take the sequence $x_n = -n$. Then $f(x_n) \rightarrow 0$, but $x_n$ clearly does not converge.
Answer to updated question:
Let $L_{\beta} = \{ x \in S | f(x) < \beta \} $, and $\underline f = \inf_{x\in S} f(x)$.
The collection of sets $L_{\underline{f}+\frac{1}{n}}$ is nested, non-empty and, by assumption, the diameter shrinks to $0$. If $x_n \in L_{\underline{f}+\frac{1}{n}}$, then it is not hard to see that $x_n$ is Cauchy, and hence converges to some $\hat{x} \in S$. Furthermore, we have $\underline{f} \leq f(x_n) < \underline{f}+\frac{1}{n}$, and since $x_n \rightarrow \hat{x}$ and $f$ is lower semi-continuous, we have $f(\hat{x}) \leq \liminf_{n \rightarrow \infty} f(x_n)$. Consequently, $f$ has a minimum on $S$ at $\hat{x}$.
Furthermore, if $f(\hat{x}) = f(y)$, with $y \in S$, the 'shrinking diameter' condition shows that $y=\hat{x}$, hence $\hat{x}$ is the unique minimizer of $f$ in $S$.
Now suppose $f(x_n) \rightarrow \underline{f} = f(\hat{x})$. Let $\epsilon > 0$. Then there exists a $\delta>0$ such that $\mathbb{diam} L_{\underline{f}+\delta} < \epsilon$, and a $N$ such that if $n>N$, then $x_n \in L_{\underline{f}+\delta}$. It follows that $x_n$ is Cauchy and converges to some element $y \in S$. As above, it follows that $f(y) = f(\hat{x})$ and hence that $y=\hat{x}$.