If this whole momentum of the object is transferred to the 5.0 kg object then according to the law of conservation of momentum, the momentum of the 25.0 kg object must be transferred to the 5.0 kg object:
Nope. It's called 'centripetal' acceleration. The force that created it MAY be gravitational, but it doesn't have to be. For things on the surface of the Earth moving in circles, it's never gravity.