The setting would probably an action setting if it does, or possibly a close up / macro setting.
I personally do not own this camera, but on a DSLR, the blur or out of focus background would come from a very shallow depth of field, such as f/2.8, f/1.4, etc...
The shallow depth of field and focal distance are important in getting this type of shot...
Hope this helps.
You can always contact Service and Support as well here on Nikon site.
Jun 11, 2012 by
Sedona, AZ, USA
Favorite Subject: Portrait
Nikon Family: 11-20 years
Experience: More than a year
Role: Semi-professional photographer