How can i implement spatial query api into this script?

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i have this script that works perfectly fine but looping through the workspace can make the game a bit laggy and so someone said to use spatial query api instead of a loop through the workspace, how can i implement spatial query api into this script?

local m2Event =  game.ReplicatedStorage.M2Remote.M2Fire

m2Event.OnServerEvent:Connect(function(plr)
	local char = plr.Character
	local hb = char:FindFirstChild("Torso")
	local root = char:FindFirstChild("HumanoidRootPart")
	local ws = game.Workspace.PlayersAndMobs
	local hum = char:WaitForChild("Humanoid")
	hum.WalkSpeed =  3.5
		
	for i,v in pairs(ws:GetChildren()) do -- look through all the workspace
		if v:FindFirstChild("Humanoid") and v:FindFirstChild("Head") and v.Name ~= plr.Name and char:FindFirstChild("Blocking") == nil then	
			local dist = (v.Head.Position - hb.Position).magnitude --find the distance between us and the ting
			if dist < 5 then -- if its less than 35 studs then
				if v:FindFirstChild("Parry").Value == true then
					print("parried")
					char:WaitForChild("Humanoid").WalkSpeed = 0
					wait(2.3)
					char:WaitForChild("Humanoid").WalkSpeed = 16
				else
					
				v.Humanoid:TakeDamage(9) -- take 30 damage
				script.Parent.HitSound:Play()
				local fxcln = script.fx:Clone()
				fxcln.Parent = v.Head.Parent.HumanoidRootPart
				fxcln.CFrame = v.Head.Parent.HumanoidRootPart.CFrame
				game.Debris:AddItem(fxcln,.3)
				local bv = Instance.new("BodyVelocity",v.HumanoidRootPart) --make the knockback
				bv.MaxForce = Vector3.new(math.huge,math.huge,math.huge) -- maximum force
				bv.Velocity = root.CFrame.lookVector * 45 + Vector3.new(0,7,10) -- the force
				game.Debris:AddItem(bv,.3) --it will last 0.5 seconds
						
						wait(1)
						hum.WalkSpeed =  16
						

				end
			end
		end
	end
end)