Label the terms of the sequence a_1, a_2, ..., a_2016, ....
Notice that the last term with the value 1 is a_1, the last term with the value 3 is a_4, the last term with the value 5 is a_9, and in general, the last term with the value 2k-1 is a_(S_k) where
S_k = sum_(i=1)^k(2i-1) = 1+3+5+7+...+(2k-1)
Then, to know the value of the terms in the subsequence containing a_2016, we need only find k such that S_(k-1) < 2016 <= S_k. Then we will have a_2016 = 2k-1. To do so, we will put S_k into a closed form.
S_k = sum_(i=1)^k(2i-1)
=-k+2sum_(i=1)^ki
=-k+2((k(k+1))/2)
=-k+k(k+1)
=k^2
(That the sum of the first n odd integers is n^2 is a useful result to remember)
Examining squares, we find that
S_44 = 44^2 < 2016 <= 45^2 = S_45
Thus a_2016 occurs after the final term of the subsequence consisting of 2(44)-1 but before the last term of the subsequence consisting of 2(45)-1, giving us a_2016 = 89.