Combine sweet peppers, jalapeno peppers and vinegar in food processor. Whirl until pureed.
Scrape puree into medium-size saucepan. Stir in sugar. Bring to a rolling boil over high heat; boil 5 minutes. Remove saucepan from heat. Pour in pectin. Add food coloring, if desired. Stir for 2 to 3 minutes.
Following manufacturers directions, pour jelly into sterilized 1/2 -pint jelly jars, leaving 1/4-inch of headspace at top of each; seal jars. Store jars in refrigerator up to 6 months. Makes eight 1/2-pint jars. (Nutrition facts are for 1 tablespoon.)