They are both probably right to some degree. :)
When you think about it, water vapour that is 'mist' which technically lies 'near to the surface of the earth', then it will likley not restrict your vision by more than 1 km, where as, 'fog', which (rises from and) lies on the ground, will almost certainly restrict vision more than mist will. Of course, under extreme conditions, or in mountainous areas, the 'distance' rule is probably better to help describe the situation, where clouds would form mist on the 'ground', even though that ground was much higher than then valley below it.