Step 1: Balance the heat.
The heat carried away by evaporation cools the water and pot. So $m_{ev}L = (m_{w} + W_{e})\,s\,\Delta\theta$.
Step 2: Why evaporation cools.
Turning liquid into vapour needs latent heat $L = 500$ cal g$^{-1}$. This heat is taken from the water, so it cools down.
Step 3: Find the total effective mass.
Water $9.5$ kg plus water equivalent $0.5$ kg gives $10$ kg $= 10000$ g.
Step 4: Heat that must leave.
Temperature falls by $\Delta\theta = 2^{\circ}$C, and $s = 1$ cal g$^{-1}\,^{\circ}$C$^{-1}$. \[ Q = 10000\times 1\times 2 = 20000 \text{ cal} \]
Step 5: Heat removed by evaporation in time $t$.
At $1$ g per minute, in $t$ minutes mass $= t$ g, so heat removed $= 500t$ cal.
Step 6: Set them equal and solve.
\[ 500t = 20000 \quad\Rightarrow\quad t = 40 \text{ min} \]So it takes $40$ minutes, which is option 3.
\[ \boxed{t = 40 \text{ min}} \]