The fetal circulation allows oxygenated blood from the placenta to bypass the lungs and circulate throughout the fetus's body. Key structures include the umbilical vein, which carries oxygenated blood from the placenta to the liver, the foramen ovale and ductus arteriosus which allow blood to bypass the lungs, and the umbilical arteries which return deoxygenated blood to the placenta. The circulatory process involves blood passing from the placenta through the umbilical vein, mixing with deoxygenated blood and passing through the foramen ovale and ductus arteriosus to supply the fetus before returning to the placenta through the umbilical arteries.