see this : http://www.uio.no/studier/emner/matnat/ifi/INF3100/v07/undervisningsmateriale/lysark/DATA-REPR-X.pdf
Block IS NOT the sector.
A block is a group of sectors that the operating system can point to .
A block might be one sector, or it might be several sectors (2,4,8, or even 16). The bigger the drive, the more sectors that a block will hold. 
Answer : 5
Size of each track = 40000 B , No. of blocks/track = 32 , Gap after each block = 250 B , Record Size = 200 B
Total blocks size = 40000 - total size of Gap = 40000 - (32*250) = 32000
size of each block = Total blocks size / no. of blocks = 32000/32 = 1000
no. of records in each blocks = size of each block / Record Size = 1000/200 = 5