Given that the tornado traveled 260 miles in 4 hours, its initial speed is 65 mi/h. Then, slowing by 20% every hour, the speed after 2 hours can be calculated through the equation,
speed = (65 mi/h) x (1-0.2)^2
speed = 41.6 mi/h
Thus, the speed of the tornado after 2 hours is approximately 41.6 mi/h.