First item about lymph i.e. lymph is formed due to leakage of blood through capillaries is correct. Rest all other statements are incorrect. Lymph is the fluid that circulates throughout the lymphatic system. The lymph is formed when the interstitial fluid (the fluid which lies in the interstices of all body tissues) is collected through lymph capillaries. Lymph contains white blood cells. Lymph returns proteins and excess interstitial fluid to the bloodstream.