The given figure shows a small part of the human lung where exchange of gases takes place. Select the option which represents the labelled part (A, B, C and D) correctly identified along with its function.
A: Alveolar cavity - main site of exchange of respiratory gases
The alveolar cavity is the main site of exchange of respiratory gases. The walls of alveoli are thin and are richly supplied with blood which favours the exchange of respiratory gases. In the given image, A represents the alveolar cavity. C represents the RBCs, which help in the transport of both oxygen and carbon dioxide in different ways. B marks the arterial capillary, which passes oxygen to tissues. D represents the interstitial space between the alveolus and the capillary wall.