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Okay...this might come as a silly one, but can anyone clarify, which of the below should we use;

--1 KB = 1024 B

--1 KB = 1000 B

There seem to be different situations, in numerical questions, and I have lost marks in mocks due to this.

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When you talk about data (memory), it's 1024

When in general, Kilo is 1000. So, 10Kbps is 10*103 bps

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Never really care for mock tests - all mock tests are substandard when compared to GATE. Judge yourself only by doing previous GATE papers and seeing official answer key. Use mock tests just for time management and other personal exam skills.

Now for your question $KB$ means $1024B$. But if by any chance the option is not matching use $1000B$. By convention $kB = 1000B.$
by Veteran (431k points)
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But sir, what if the question is numerical answer type?
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That's why I told it is 1024 - you'll surely get mark in GATE. For other exams please see some astrologer.
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Thank you :)
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@Arjun sir, what I think is, when it comes to storing the data then it should be 1024 Bytes(OS), and when it comes to Transfering of data from disk(DMA questions), Bandwidth (CN) then it is 1000 Bytes. Just observation.