One way is to use an 'alpha effect' mask. You make a stack of three tracks (I'm ignoring any audio here):
your video clip
a B&W image of say a circle or oval with 'Effects' tab >> 'Video effects' >> 'Chroma key' >> 'Alpha' applied
the same video clip with 'Effects' tab >> 'Video effects' >> 'Distortion' >> 'Sand' or 'Blur' etc
The B&W image acts as a mask. Where it is black you see the track above and where it is white you see the track below. 'Above / Below' can be reversed by clicking on the up/down arrow at the start of the track. You would probably create mask in a bitmap / photo editing program. Up to you to choose the shape and locaton of the area of interest. It need not be hard edge B&W, grey edges in the mask area will blend the two versions of your video.
A search for 'mask face' here will get you to several Q&A threads with more detail. Your problem is identical :-), it just that you want to keep the face clear rather than obscuring it!
Carl's method is more intuitive but there is another way that's sort of built-in to MEP which uses two tracks instead of three.
This image below shows a couple of examples of the results. They're identical to what you'd get following Carl's instructions, but using this alternative method (which Magix actually calls Effect Masks).