Translation:I did not see the house in the mist.
The hints incorrectly suggest fog and haze as translations of la brume.
Mist (brume) allows visibility of 1000 metres to 5000 metres. When visibility is less than 1000 metres it is called fog (brouillard). This distinction is the same in French as it is in English.
If you are studying metorology, that may be true. But actual use is rather broader than that. Larousse gives: "mist, haze, fog" as other definitions for "brume". For "fog", one may alternatively say "brouillard" (f).
"Je n'ai pas vu" is also accepted. Note that "ne...pas" surrounds the conjugated verb, not the past participle.
Stative verbs (including sensory verbs: see, taste, smell, feel) are generally not used in continuous tenses. https://www.thoughtco.com/differences-between-action-and-stative-verbs-1211141