Final answer:
Approximately 97% of the oxygen that diffuses out of the alveoli binds to hemoglobin in RBCs, which transports oxygen to body tissues.
Step-by-step explanation:
Approximately 97% of the oxygen that diffuses out of the alveoli binds to hemoglobin in red blood cells (RBCs). Hemoglobin is a respiratory pigment that carries oxygen from the lungs to the tissues. The remaining oxygen is either dissolved in plasma or exhaled, but the vast majority is used in the transport and release of oxygen throughout the body's tissues via hemoglobin.