Will chronic bronchitis heal by itself if one stops smoking, drink lots of water n jog?

No... Unfortunately, there is no cure for chronic bronchitis, a form of copd. The measures you describe are important to do, however, in order to slow the progression of the disease and to control symptoms of the disorder. If you smoke and do not yet have copd, smoking cessation can prevent the disease from occurring in the first place.
Not completely. Stopping smoking is most essential. You wont heal 100% but you may improve significantly. Also, you will slow the rate of any future deterioration. Water and jogging have less clear benefit but they are both part of a healthy lifestyle and should be encouraged (unless your doctor has warned you against these).
Good idea. It depends on the degree of damage to lungs but not going to improve if you don't stop smoking!