In food processor, finely chop green peppers and jalapenos with vinegar.
Place pepper mixture in 5- or 6-quart heavy-bottomed nonaluminum saucepan. Stir in sugar and water. Bring to boiling, stirring occasionally; boil over medium-high heat 5 minutes or until slightly thickened.
Meanwhile, in small saucepan boil pectin-water mixture 1 minute.
Add pectin mixture, lemon juice and desired amount of green food coloring to pepper mixture. Boil 2 minutes. Remove from heat.
Pour hot jelly mixture into 6 sterilized 1/2-pint canning jars; seal. Process in hot water bath following manufacturers instructions. Remove jars from water and place on wire rack. Let stand at room temperature 24 hours or until jelly sets up.
Store in cool, dark place for up to 6 months.