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I want to restrict user cannot view other files in the document library?

Only he should get access to one file and he can read the file.

If possible can you guide folder level access is there? I can assign one folder to one person to access?

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You can break permission inheritance on Library/List, Folder and File level. Is this what you are looking for? Just be careful doing it at a too low level if you have large amount of files this will have a negative impact on SP performance over time.

Here is best practices for fine grained permission configuration for SP2013 http://technet.microsoft.com/en-us/library/gg128955(v=office.15).aspx

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