Hah... I already gave you my answer! I went to 400 (or maybe higher), but that's because I already had paper on-hand to at least 2000 grit. I see folks on Cub forums posting anywhere between 120 and 600 grit, as the final surface. I basically look at the surface, and make a call on whether or not I think it's scratch-free enough for the head gasket to make a good seal.
Having only done this a few times in 40 years, but I guess Jags has done a bunch of these, and he says 240 is good enough. I would guess that if you go too coarse, you'll see evidence of blow-by at the aluminum ring on the head gasket, next time you have the head off. Then you'll know.
BTW... don't use that velcro chit! It's not flat enough. You'll end up with a convex (not flat) surface on the head. Your local body shop supplier will have the flat SiC paper I use, and they sell single sheets (it's expensive, for sandpaper).