The air that we breathe in contains oxygen. When oxygen enters the lungs, it reaches the alveoli. As alveoli contain more oxygen than blood capillaries, oxygen moves from alveoli to the blood capillaries and combines with haemoglobin (a red pigment in the blood) and forms oxyhaemoglobin. This oxyhaemoglobin reaches all the cells of our body through the blood and combines with food to release energy required to perform various life processes.