Combine vinegar, lemon juice, lemon zest and jalapeno peppers in a blender. Process stop-and-go fashion to desired fineness. Combine with sugar in saucepan and bring to a boil. Boil hard for 5 minutes. Stir occasionally. Remove from heat and skim to remove foam. Cool 2 minutes, then mix in pectin and food color.
Pour into sterilized jars and fasten lids. Process in boiling water bath for 15 minutes, if desired, or refrigerate (the original recipe did not call for processing). Cool.
Invert jars a few times after about 30 minutes of cooling to distribute peppers evenly before jelly completely sets.