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The Question is wrong . It should be: each "packet"  [NOT HOST, IT IS WRONG ] in the network is identified by 48 bit number 
Each "packet" in the network is identified by 48 bit number
Host Wrap Around Time = Total no of Packets  / Total no of IDs generated by IPv4 hosts.  
It is a IPv4 network, So, Consider the no of hosts to be 2^32  i.e equal to the number of IP addresses and 1 host generates 500 packets.

Total Packets generated =  2 ^ 48 packets
Rate of generation = [(2^32) * 500] packets per second 

Host Wrap Around Time 2^[48-32] / 500 = 131.072 seconds.

REFER GATE QUESTION : 
GATE-CS-2014-(Set-3) | Question 65

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