Answer:
The exchange of oxygen and carbon dioxide during respiration occurs in the alveoli of the lungs. Alveoli are the small pouch-like air sacs in the lungs, these have thin walls (membrane) and are surrounded by a network of blood capillaries.
When we breathe in, the alveoli gets filled with air containing oxygen.
This oxygen gets diffused into the blood through the alveolar membrane and is then transported to all parts of the body (via haemoglobin). Oxygen gets utilised in the process of cellular respiration, and carbon dioxide is produced as a waste product. This carbon dioxide diffuses into the blood and is carried to the lungs and gets removed from the body while exhaling (breathing out).