The correct answer is in intercellular spaces.Concept:Lymph:It is a colourless fluid containing specialized cells called lymphocytes that provides immunity to the body. It also carries hormones, and nutrients: and absorbs fats in lacteals present in the intestinal villi. Explanation:Lymphatic system:When the exchange of materials takes place between capillaries and tissue, some water and small water-soluble substances move out into spaces between the cells of the tissue.This fluid released into the intercellular spaces is called lymph/ interstitial tissue/ tissue fluid.An elaborate network of vessels called the lymphatic system collects the lymph and drains it back to major veins.