i don't think i have the greatest understanding of what you're trying to do, but my advice would be to put layer 3 on the bottom. add alpha channel masks to layers 1 and 2 and play around with making sections of those layers transparent and see if that's what you're going for. an alpha channel mask is basically grayscale representation of transparency.
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Do you have an example of what you want from the seamless blend? Easiest would be to do some careful masking of some elements so they break the frames of your layout - buildings from the village spilling up into the other two images, for example.
A harder way would be to design the images so that one element could become another - the magic rock sharing a silhouette with a mountain behind the village, and transitioning from "magic rock" color and texture to "wooded mountain" texture. Probably easier to do that if you're creating it from scratch - drawing, CG or doing your own photography, and will require even more careful masking if you go for it.
I'm a terrible artist but I'm trying to make a cover for a short book I wrote.
Here are the images I want to blend.



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