Drain cherries, reserving syrup. Chop cherries into small pieces; combine with chopped peppers; set aside. In a medium saucepan, combine Sugar and cornstarch; mix well. Add enough water to reserved cherry syrup to make 1 cup; gradually stir cherry syrup into Sugar mixture. Cook, stirring, over medium heat until thickened and bubbly. Add cherry-pepper mixture; reduce heat and simmer 5 minutes to blend flavors.