Number of cache sets = 16K / (4 * 4 * 32 / 8) = 256.
Consecutive memory blocks will be mapped to consecutive cache sets (from left end, after offset bits we have index bits). Here we have word addressing as question asks for "word at location". So, number of offset bits = 2. So, next 8 bits are index bits. i.e., 8FA (top part of address won't affect the set) = 1000 1111 10 | 10
which will be 62.