Tissue fluid, also known as interstitial fluid, acts as a medium for substance exchange between cells and blood and constitutes about 20% of extracellular fluid. The formation and reabsorption of tissue fluid involve filtration driven by hydrostatic pressure and the opposing oncotic pressure, leading to a net filtration pressure. The Starling hypothesis describes this balance of pressures, emphasizing the importance of the pressure gradient in fluid regulation at the capillary ends.