When a person breaths in air with oxygen it enters the nasal cavity and travels through the lungs where its picked up by red blood cells, carbon dioxide is exchanged and brought back to the lungs where a person exhales it. Waste products from your body, in the form of carbon dioxide come out of the capillaries back into the alveoli.
Blood with fresh oxygen is carried from the lungs to the left side of the heart, which pumps blood around your body through the arteries. Inhaled oxygen enters the lungs and reaches the