The exchange of gases occurs in the alveoli of the lungs.

Here's a breakdown:

* Alveoli: Tiny air sacs in the lungs that are surrounded by capillaries (tiny blood vessels).

* Gas Exchange: Oxygen from the inhaled air diffuses from the alveoli into the capillaries, while carbon dioxide from the blood diffuses from the capillaries into the alveoli to be exhaled.

Let me know if you'd like to learn more about the process of gas exchange!