Update (Sep 4, 2017): Like a few people commented below, I sampled & used a wrong part of Peg. I've just uploaded the beat with the correction (I also worked on the dodgy drum loop) [ Ссылка ]

The beat starts at 0:35. It took me long time to realize that "Peg" sample was time stretched! I found it pretty amazing, consider that this song was produced before 1989. Akai S900 and S950 did have sample time stretching function, but this must be one of the earliest hip hop beat with time stretched sample used.
The "Peg" samples were time stretched on 2000XL (I've never used the function before!)
P.S. The drum sample is NOT taken from Sly & Family Stone, Wikipedia is incorrect on this.

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