Gas exchange
The exchange of gases (O2 and CO2) between air and blood occurs in the pulmonary alveoli. The walls of the pulmonary alveoli are very thin and are surrounded by a network of blood capillaries.
Gas exchange is done through a physical process called diffusion, in which molecules move from where there is more concentration to where there is less until they equalize.
The red blood cells are responsible for transporting oxygen in the blood. Oxygen binds to iron in a protein, called hemoglobin, found in red blood cells, and this is how it is transported. Instead, carbon dioxide is transported dissolved in the blood plasma (the liquid part of the blood).