The heat generation rate \( q \) is given by:
\[
q = \frac{k \cdot A \cdot \Delta T}{L},
\]
where:
- \( k \) is the thermal conductivity of PVC,
- \( A \) is the cross-sectional area of the wire,
- \( \Delta T \) is the temperature difference between the surface and the surrounding air,
- \( L \) is the thickness of the PVC layer.
The surface area of the cylindrical wire is:
\[
A = 2 \pi r L,
\]
where \( r = 1 \, \text{mm} = 0.001 \, \text{m} \).
The temperature difference for the uncoated wire is:
\[
\Delta T_{\text{uncoated}} = 75 - 25 = 50 \, \text{°C}.
\]
The temperature difference for the coated wire is:
\[
\Delta T_{\text{coated}} = 75 - 55 = 20 \, \text{°C}.
\]
The heat transfer rate for the uncoated wire is:
\[
q_{\text{uncoated}} = \frac{k \cdot 2 \pi \cdot 0.001 \cdot 50}{1}.
\]
For the coated wire, the heat transfer rate is:
\[
q_{\text{coated}} = \frac{k \cdot 2 \pi \cdot 0.001 \cdot 20}{2 \times 10^{-3}}.
\]
Since the heat generation rate is the same for both wires, we can equate the two equations to solve for \( k \):
\[
k = \boxed{0.10 \, \text{to} \, 0.12 \, \text{W/m.K}}.
\]