From the Super Mario Wiki, the Mario encyclopedia
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A pepper, also called a Chili Pepper, is a type of spicy fruit in Yoshi's Story. Yoshis are not fond of the fruit's spicy nature, as they will stick their tongue out in disgust after consumption, and lose one petal from their Smile Meter. However, the unlockable Black Yoshi and White Yoshi seem to be fond of peppers in Yoshi's Story, as they do not take damage from them.
Peppers also appear alongside other fruits in Super Mario Sunshine at Delfino Plaza. If a Yoshi eats one, it turns purple, allowing it to spit juice of the same color that turns enemies into purple forward-moving platforms. It is the only fruit that Yoshis never ask for to hatch out of their eggs. It is also used to defeat King Boo at the casino of Hotel Delfino. By throwing a pepper at his tongue, King Boo is stunned, allowing Mario to damage him with another fruit.