for gas transport you need 3 things operating well:
1. ventilation (integrity of breathing physiology)
2. perfusion (blood flow)
3. diffusion (alveolar wall)
let's forget about ventilation, assume that it is constant. you might have 2 situations affecting transport of gas into and out of blood:
-perfusion limited is when O2 enters blood and CO2 exits along the capillary, you have normal thickness of alveolar wall and no dead zones in your lung. by this I mean that the only way to increase your gas exchanges is increasing the blood flow as the other factors remain constant
-diffusion limited let's say that you have pulmonary fibrosis, or ARDS or emphysema and your alveolar walls are thickened or destroyed. can you imagine gas going through that space? even if blood reaches well the alveolar wall it cannot be packed with O2 because the gas is not passing through the walls. you can increase ventilation and perfusion, but your bridge between this 2 is broken so you can't improve gas exchange. that's why we say it is diffusion limited