1. Breathing involves inhaling and exhaling air, while respiration is the process of burning food to produce energy through the production of carbon dioxide and water. 2. The air is filtered and warmed as it passes through the nostrils before inhalation and after exhalation it contains less oxygen and more carbon dioxide and water vapor. 3. The lungs have a large surface area, thin walls, and moist layer to facilitate gas diffusion between inhaled and exhaled air and the blood in capillaries. Oxygen from oxyhemoglobin diffuses into tissues while carbon dioxide diffuses into the blood.