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"U-Boot" is a sub category (no pun intended) of "Boot". Without context, you'd have to use "U-Boot". If it's obvious that what you're referring to can only be a submarine, you can use "Boot" as well.
A "Boot" tends to be small, and a "ship" tends to be large. The difference is not clear-cut, though.
The audio is fine. The vowel sound in "Boot" doesn't exist in General American or Received Pronunciation. It's a single vowel, not a diphthong. Imagine saying "boat" in a Scottish accent.