Step 1: Use radioactive decay formula.
\[
\frac{N}{N_0} = \left(\frac{1}{2}\right)^n
\]
Step 2: Compare with given fraction.
Given:
\[
\frac{N}{N_0} = \frac{1}{16}
\]
But:
\[
\frac{1}{16} = \left(\frac{1}{2}\right)^4
\]
So number of half-lives \(n = 4\).
Step 3: Total time is 2 hours.
\[
2 \text{ hours} = 120 \text{ min}
\]
Step 4: Find half-life.
\[
T_{1/2} = \frac{120}{4} = 30 \text{ min}
\]
Final Answer:
\[
\boxed{30 \text{ min}}
\]