The air you breathe in goes through the trachea, this splits into two tubes called bronchi
The bronchi split into progressively smaller tubes called the broncioles
At the end of the bronchioles are tiny sacs called alveoli which have very thin walls to allow gases to diffuse across them easily.
Alveoli are surrounded by capillaries so that oxygen can diffuse from the lungs into the bloodstream and carbon dioxide can diffuse out of the bloodstream into the lungs.
The blood passing nexto the alveoli has just returned to the lungs from the rest of the body, so it contains lots of CO2 and very little oxygen.
Oxygen diffuses out of the alveolus (high concentration) into the blood (low concentration). CO2 diffuses out of the blood into the alveolus to be breathed out
When the blood reaches body cells, oxygen is released from red blood cells (high concentration) and diffuses into the body cells (low concentration).
CO2 diffuses out of the body cells (high concentration) into the blood (low concentration). Its then carried back to the lungs.
The lungs
Bronchioles end in clusters of air sacs called alveoli