There are two different types of rot on peppers and if it is on the blossom end of the fruit it is caused by lack of calcium and called blossom end rot. Infrequent watering then flooding with water and also too much fertilizer can interfere with the take up of calcium from the soil. The other soft rot is caused by a bacteria that moves in from excess nitrogen, too much water or an injury to the fruit often from insect stings. The peppers are safe to eat if you cut away the rot. Next year use a mulch to keep the moisture more consistent and avoid high nitrogen plant foods such as chicken manures or lawn foods that could drift onto plants. I use Osmocote Plus on tomatoes and peppers because the nutrients are released slowly over time to avoid that high nitrogen dump that can encourage fast, soft growth and disease problems. Keep growing, Marianne Binetti