The best algorithm here will do sorting of the linked list $I$ which can be done in $\Theta(k \log k)$ time and then one can simply do a traversal of $L$ in $\Theta(n).$ So, total complexity is $\Theta(k \log k) + \Theta(n).$
Since, $n/4 < k < n/2,$ we get $ k = \Theta(n).$
So, $\Theta(k \log k) + \Theta(n) \implies \Theta(n \log n) + \Theta(n) = \Theta(n \log n).$