Step 1: Understanding the Concept
\(\text{O}_2\) is non-polar, so only a little dissolves physically in water, following Henry's law.
Step 2: Role of blood
Blood contains haemoglobin in red blood cells. Each haemoglobin binds up to four \(\text{O}_2\) molecules reversibly at its haem sites, forming oxyhaemoglobin.
Step 3: Conclusion
This chemical binding removes dissolved \(\text{O}_2\) from solution, so far more oxygen is taken up than in water.
Final Answer:
The high solubility is due to the binding of oxygen to haemoglobin.
\[ \boxed{\text{(C) }\text{binding of O}_{2}\text{ molecule to hemoglobin in blood}} \]