I guess I/we are missing something obvious, then. Because from strictly an area calculation, at least three sheets of paper are needed.
The combined area of 10 circles with a 2.5" radius is 196.25 sq in. The combined area of TWO 8.5 x 11 sheets of paper is 187 sq in. So no matter how many arcs you divide each circle in order to maximize the coverage of a piece of paper, you'll need AT LEAST three sheets of paper to meet the area requirements alone. As I mentioned In my earlier post, the project can be completed with three sheets of paper.