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What is the state of aggregation (gas, liquid) of Oxygenoxygen in the blood?

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What is the state (gas, liquid) of Oxygen in the blood?

Atmospheric oxygen is in O2 and a gas. Then we inhale the air, our efficient lungs do the magic to filter out the oxygen and push them into the blood stream.

When we say hemo and globin transport the oxygen using the iron ions. In what state oxygen is transported in the blood? as a gas or a liquid or an ion? It is hard for me to conceive of the idea that oxygen would be in gaseous form in the blood. "GAS in blood?" e.g. Arterial Blood Gas Test

Also, how does the lungs convert the gas into something that is compatible to be in blood?

References: Amount of Oxygen in the Blood