When Time quantum is greater than or equal to context switch time, in that case we say that CPU is being effectivel utilized.
Because, RR favours CPU bound processes and a CPU-bound process runs for all its time slice and is put back into the ready queue rather than I/O bound processes because an I/O bound process uses the CPU for a time less than the time quantum before it is blocked for an I/O . Hence, it is always a good approach to make TQ larger than the time required to handle the clock interrupt and dispatching but should not be much higher.
Now, how the context switch occurs for a program residing on a HD ? It is in the form of swap in and swap out
So, for better CPU utilization TQ >= Swap In + Swap Out
=> Swap In = Time taken to transfer the program + average latency
=> Swap In = 200kb / 2mbps + 10 ms
=> Swap In = 110 ms
Hence, Minimum TQ for effective CPU utilization = 110 * 2 = 220 ms.