Concept:
A circle touching both coordinate axes in the second quadrant and having radius \(2\) must have centre
\[
(-2,2).
\]
Two circles intersect at two distinct points if the distance \(d\) between their centres satisfies
\[
|r_1-r_2|<d<r_1+r_2.
\]
Step 1: Find the centre of circle \(S_1\).
Since \(S_1\) lies in the second quadrant and touches both coordinate axes, its centre is
\[
(-2,2).
\]
Its radius is
\[
2.
\]
Step 2: Find the distance between the centres.
The centre of \(S\) is
\[
(2,5).
\]
Hence,
\[
d
=
\sqrt{(2+2)^2+(5-2)^2}.
\]
\[
=
\sqrt{16+9}.
\]
\[
=5.
\]
Step 3: Apply the condition for two-point intersection.
Let the radius of \(S\) be \(r\).
For two distinct points of intersection,
\[
|r-2|<5<r+2.
\]
From
\[
5<r+2,
\]
\[
r>3.
\]
Also,
\[
|r-2|<5.
\]
\[
-5<r-2<5.
\]
\[
-3<r<7.
\]
Since radius is positive,
\[
r<7.
\]
Combining,
\[
3<r<7.
\]
Step 4: Write the final answer.
\[
\boxed{(3,7)}
\]