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chili (pepper) - American English.
chili con carne (US) - A meal of chili peppers with meat, often shortened to simply chili.
Chile - A country.
chile - Spanish for chili pepper but often used by Americans instead of chili, especially when referring to Spanish/Mexican varieties or when distinguishing between the pepper and the meal.
chilli - British English and used in some of Europe and Australia.
Yes I am of this ilk, but from AZ. I think most of SW USA has this understanding:
Chile = pepper. In nm that spelling includes freshvpeppers, pepper preparations like green chille stew, as well as just chopped/roasted green chile flesh, as well as dried chile powder, as well as sauces (both red and green) used to smother various dishes in nm quisine. You have to use context to know which a new mexican is referring to when they say chile. Colorado and Arizona pretty much take their qs from NM, and to some extent southern CA too.
Chilli (2 l's) = texas red beef stew (or the seasoning blends used to make it). Also how british and other uncultured ppl spell "chile"
The original term was "chīlli", in the Nahuatl (Aztec) language. The Spanish introduced the term chilli to their countries, which evolved into chile. The English introduced the term chilli from the Spanish, and it has remained in the vocabulary, while the romanization chili has spread into American English.
I would not give a meaning of right or wrong to the different terms, languages are dynamic and evolve, and today they are identified for what they are at this moment. English itself was a mix of Germanic languages (Angles and Saxon people), French, Latin and Old Norse
In Danish chili (or chilipeber) is the fruit and Chile is the country. Chili con carne is seen as more of a Mexican dish than a US dish by the people I've talked to but could be different for other Danes.