I have heard of people putting Adsenses' TOS link on their site. Do I need to do this or put any similar link on my site?
no you dont. TOS is not for visitors but for publishers. what you need to put on your site is the privacy policy
No. There's no need to put the link on your blog. As long as you follow their rules, then you are safe.
Don't forget to include a reference to the DoubleClick DART cookie in your Privacy Policy. https://www.google.com/adsense/support/bin/answer.py?hl=en&answer=100557
I believe you're okay with a link to your privacy policy rather than posting the policy itself. If you're using Blogger, you can set it up as one of the "Pages" and you're good to go. If it's a regular website, make a file named privacy.html and paste your policy there - then link to the policy from your site.