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The "chile" spelling is from Spanish, particularly Mexican and Central American Spanish. The word is derived from Nahuatl (Aztec).

That said, I'm in northern US and I would spell the pepper "chili"

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Oddly I associate `chile` with the pepper and `chili` with the stew. Curiously chili pepper seems to be the common spelling around where I live so I have no clue where I picked this up.

And the name of the country Chile has no relation to the nahuatl word for pepper but comes from a word in a south American language (likely Aymara)

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