Sterilize jars, rings, and lids according to the instructions in Home Canning (Boiling Water Method). Keep the jars in the canning pot and the lids and bands in the 3-quart pot with hot, not boiling, water.
Cook the Jelly
In the blender or food processor, puree the peppers with 1 cup (250 mL) of the cider vinegar until smooth.
In the large stainless sauce pan, add the pepper puree, sugar, and the remaining 1 cup (250 mL) of cider vinegar. Stir. Bring to a boil over high heat, and continue boiling while stirring for 10 minutes.
Stir in the pectin and food coloring (if desired). Boil hard, stirring constantly, for about 1 minute. Remove from heat and quickly skim off the foam.
Process the Jelly
Quickly pour the hot jelly into the jars, leaving ¼ inch (0.5 cm) headspace. Wipe the rims clean.
Center the lids on the jars and screw the bands down, just until your feel resistance. The bands should be fingertip tight, not too tight.
Place jars in the canner, ensuring they are completely covered with water. Cover and bring to a boil and process for 10 minutes. Remove the canner lid and wait 5 minutes.
Remove the jars and allow them to cool completely. The lids should pop as they seal. Store in a cool, dark, dry place for up to 1 year. If the lids do not seal, then you must reprocess or store in the refrigerator and use within a few days for safety.