I don't know the velocity. The piston will only move up as quickly as the water can exit the top. I can't just assign an arbitrary velocity to the piston, can I?
As for the PSI of the water coming out the top of the pipe... I must admit I have a bit of confusion. 2000 lbs. is being applied to a piston with an area of roughly 452.16 square inches... which I guess means the piston is applying 4.42 PSI. But when the pipe narrows at the top to 1 square inch... does that mean the water comes out at 4.42 PSI, or does that mean the water comes out at 2000 PSI?
(yes, I am ignoring the weight of the water and the weight of the piston itself, but I could deduct it and still have the same question with a force a bit lower than 2000 lbs being applied to the water).