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In the method I used you'll need to use the pen tool.

- Use the pen tool to make a selection of the circle (not quite a circle BTW)

- Press CTRL+J to place it on his own layer.

- Choose the right color and select the circle layer by pressing CTRL+ thumbnail. You'll see the 'marching ants' around the selecting. Press ALT+DEL if the choosen color is the foregroundcolor. Now the circle is filled with the choosen color.

- Select the circle layer and press CTRL+J to duplicate it.

- Go to select/modify/contract and fill 15 px then press enter. The second circle is now a lot more narrow. Fill it with white (make sure white is the foregroundcolor and press ALT+DEL)

- Press CTRL+D to deselect the second circle (no marching ants)

- Go to filter/blur/gaussianblur and there you'll have to experiment how much blur to apply.

If pieces of the original circle are showing make the original layer active and remove those pieces with the clone stamp tool.

There are many ways to this but I tried to pick the easiest one.

Good luck.