Official solution
Equation of perpendicular bisector of AB is
\[y - {3 \over 2} = - {1 \over 5}\left( {x - {5 \over 2}} \right) \Rightarrow x + 5y = 10\]
Solving it with equation of given circle,
\[{(x - 5)^2}{\left( {{{10 - x} \over 5} - 1} \right)^2} = {{13} \over 2}\]
\[ \Rightarrow {(x - 5)^2}\left( {1 + {1 \over {25}}} \right) = {{13} \over 2}\]
\[ \Rightarrow x - 5 = \pm \,{5 \over 2} \Rightarrow x = {5 \over 2}\] or \[{{15} \over 2}\]
But \[x \ne {5 \over 2}\] because AB is not the diameter.
So, centre will be \[\left( {{{15} \over 2},{1 \over 2}} \right)\]
Now, \[{r^2} = {\left( {{{15} \over 2} - 2} \right)^2} + {\left( {{1 \over 2} + 1} \right)^2}\]
\[ = {{65} \over 2}\]