The hard disk transfers data at 2000 KB/s, and the average block size is 4 KB.
Therefore, the number of block transfers per second is:
$$
\frac{2000}{4} = 500 \text{ blocks/sec}
$$
For each block transfer, the processor spends:
Hence, total processor overhead per block is:
$$
1000 + 500 = 1500 \text{ cycles}
$$
Since there are 500 block transfers per second, total processor cycles consumed per second are:
$$
500 \times 1500 = 750000 \text{ cycles/sec}
$$
The processor speed is:
$$
50 \text{ MHz} = 50 \times 10^6 \text{ cycles/sec}
$$
Therefore, the fraction of processor time consumed by the disk is:
$$
\frac{750000}{50 \times 10^6}
= 0.015
$$
$$
= 1.5%
$$
Hence, the fraction of processor time consumed is:
$$
\boxed{0.015 \text{ (or } 1.5\%\text{)}}
$$