Final answer:
The trachea bifurcates into two bronchi as it proceeds caudally. These bronchi then branch into bronchioles, leading to the alveoli where gas exchange with blood takes place.
Step-by-step explanation:
Proceeding caudally, the trachea bifurcates into two bronchi. The trachea, also known as the windpipe, is a vital part of the respiratory system, providing an unobstructed path for air to reach the lungs. As it enters the lungs, the trachea splits into the right and left bronchi, which further branch into smaller passages called bronchioles that lead to the alveoli, where gas exchange occurs. The bronchi and bronchioles are made up of cartilage and cilia that help prevent collapse and remove particulates, respectively. The alveoli are tiny air sacs surrounded by capillaries where gas exchange between the lungs and blood takes place.