Vital capacity is the amount of oxygen which can be inspired by the lungs to fuel the body with oxygen. It is affected by long term exercise because as the body is worked during a physical activity there is a high demand for oxygen, this is why breathing deepens when exercising. Over time the lungs increase in size to allow more oxygen in to the body so that there is more oxygen to provide the muscles with energy so that they can cope with the demand.
Also the catergry for this question should be respiroty system and not skeletal :)
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