In the alveoli
Air from the nose passes down the trachea, bronchi and bronchioles and ends in the alveoli at the ends of the bronchioles, each wrapped in blood capillaries.
Figure to be added
Oxygen
The concentration of O2 in the alveolar air is higher than in the blood of the capillaries, so O2 diffuses into the blood.
Carbon dioxide and water vapour
Their concentration in the blood is higher than in the alveolar air, so they diffuse into the alveoli and leave in the exhaled air.
Figure to be added
The place where gases are exchanged between the outside and the blood is the respiratory surface. In humans it is the wall of the alveoli, and the gases cross it by diffusion.