Here are the steps to solve this problem:
1) The open-loop transfer function is given as:
G(s) = Kv/s
2) To reduce overshoot, we need to add a compensator to increase the damping. A lag compensator is suitable here.
3) A lag compensator has the transfer function:
Gc(s) = (s+z)/(s+p)
4) To reduce overshoot to less than 20%, we choose z=0.1 and p=0.05
5) The closed-loop transfer function is:
T(s) = Kv(s+0.1)/(s(s+0.05))