Deoxygenated blood from pulmonary artery = low concentration of O2 and high conc. of CO2, compared with the air inside the alveoli. Blood reaches the capillaries surrounding the alveo, O2 diffuses into blood through the squamous epithelial membrane, from a high to a low O2 conc.. At the same time CO2 in the blood moves from the blood into the alveoli, conc. of CO2 in the blood from the pulmonary artery is greater than that in the inhaled air in the alveoli. This all occurs via diffusion, blood is circulated from the lungs to the heart via heart contractions to be circulated around the body. Tgis circulation of blood and air maintains a conc. gradient at the alveolar epithelium, to ensure efficient diffusion and avoid equilibrium.