To blur your images, you can either:
Add a blur effect to each layer, and manually keyframe the blur as the camera moves
or
Turn on Depth of Field in your Camera settings. You’ll need to experiment with focal lengths and blur amounts until you get what you want.
To add fog, you will need to generate the fog on a solid with Fractal Noise or a particle generator (CC Particle World, Trapcode Particular etc) or locate some stock footage of smoke/fog. It will then need to be positioned in 3D space multiple times between your objects, probably with keyframed opacity to increase the visibility of the fog as the camera moves away from it.