You can give a blur effect to any image or video that you add to your scene.
Step 1: Go to the 'Advanced Editing' tab.
Step 2: Select the image/video you wish to blur.
Step 3: On the right panel, increase/decrease the blur effect using the slider shown below:
There are a bunch of edit options available for images and video - filters, cropping, trimming, etc. You can find all of them on the right panel after selecting the image or video.