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The alveoli/capillary bed interface is where the exchange of gases (oxygen and carbon dioxide) takes place in the lungs. The alveoli are small air sacs in the lungs that are surrounded by capillaries, which are tiny blood vessels. When we breathe in, oxygen enters the alveoli and diffuses through the thin walls of the alveoli and capillaries into the bloodstream, where it binds to hemoglobin in red blood cells for transport to the body's tissues. At the same time, carbon dioxide from the bloodstream diffuses back into the alveoli to be exhaled out of the body. This process is called gas exchange and is essential for maintaining normal levels of oxygen and carbon dioxide in the body.