According to the Mirriam-Webster on-line dictionary:
Quote:
1 a: a hot pepper of any of a group of cultivars (Capsicum annuum annuum group longum) noted for their pungency —called also chili pepper but usually chilli plural chillies also chil·lis chiefly British : a pepper whether hot or sweet
2 a: a thick sauce of meat and chilies b: chili con carne
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So we are both correct.