Step 1: Identify the controlling dimensionless group.
The streamline-to-turbulent switch is governed by the Reynolds number $R_n = \dfrac{\rho v d}{\eta}$. We simply set $R_n$ to its critical value and solve for the speed $v$.
Step 2: Rearrange for speed.
$v_c = \dfrac{R_n\,\eta}{\rho\,d}$.
Step 3: Convert the geometry.
Radius $r = 1\,\text{cm} = 10^{-2}\,\text{m}$, so the diameter is $d = 2r = 2 \times 10^{-2}\,\text{m}$.
Step 4: Insert the numbers.
$v_c = \dfrac{2500 \times (1 \times 10^{-3})}{(10^{3}) \times (2 \times 10^{-2})}$.
Step 5: Simplify top and bottom.
Numerator $= 2.5$; denominator $= 10^{3} \times 2 \times 10^{-2} = 20$. So $v_c = \dfrac{2.5}{20}$.
Step 6: Final value.
$v_c = 0.125\,\text{m/s}$, the speed at which the flow turns turbulent. \[ \boxed{v_c = 0.125\ \text{m/s}} \]