I was going to write this post as a continuation to the last one but however today in class we spoke about collinearity as mentioned by someone, so I wanted to check my multiple linear regression model for any.

This showed that the VIF values for both predictors were low and hence do not show any signs of collinearity.
Also while I continue to look for a better fitting model, I tried a simple comparison between the simple linear model for diabetes against inactivity, against the multiple linear model.

Since the P value shown is low, we can reject the hypotheses that both these models represent the data equally well and that the multiple linear regression model is in fact better.
Will continue looking for better transformations to apply to the make the fit better.