The arterial end is the part where the blood enters from the capillaries into the alveolus. The PO2 at the arterial end has a lower concentration of oxygen that is the PO2 is 40 and once this blood enters the alveolus the oxygen from the air in the alveoli dissolved in the blood hence increasing the PO2 of the air. The PO2 of the air remains the same until it reaches the body part where the oxygen is again consumed. Hence the option PO2 in the capillaries is lower than the PO2 in the alveoli is the right option