In a 4- or 5-quart Dutch oven combine apples, the coarsely chopped green pepper, jalapeno peppers, vinegar, sugar, and water. Bring to boiling; reduce heat. Boil gently, uncovered, for 10 minutes. Strain mixture through a sieve, pressing with the back of a spoon to remove all liquid (should have 4 cups). Discard pulp.

Return liquid to Dutch oven; bring to boiling. Add pectin; return to boiling. Boil hard for 1 minute, stirring constantly. Remove from heat. Stir in the finely chopped green and red sweet peppers and the banana pepper. Pour into hot, sterilized half-pint canning jars, leaving a 1/4-inch head space. Wipe rims; adjust lids. Process in boiling-water bath for 5 minutes (start timing after water boils). Remove from water bath; cool on wire rack until set (jelly will take 2 to 3 days to set). Store jars in a cool, dark place up to 3 months. Makes about 5 half-pints (70, 1-tablespoon servings).

Chopped pepper pieces will float to top upon standing.

*Because hot peppers contain oils that can burn your eyes, lips, and skin, protect yourself when working with the peppers by wearing plastic gloves. Be sure to wash your hands thoroughly before touching your eyes or face.