There are at least 5 hypothesis of why Chile is called Chile.

1. When the Spanish arrived at what is now the Aconcagua Valley, the chief of these lands was a Cacique called Tili.
2. There was a bird which sang ‘Chilli, chilli’, so the Spanish named the lands in which this bird sang Chile
3. Quechuas and aymaras called Chile Chili, “the land beyond”
4. Chiri means cold in quechua, and there are cold lands in what is now the Chile that incas didn’t annex.
5. The mapuche have always called this land Chili

And to the last point you mentioned, this is the cacho de cabra, a spicy chile from Chile

Add some natural catastrophes (earthquakes, forest fires, earthquakes, alluviums, earthquakes, tsunamis and earthquakes), and it kind of looks like Chile

And before some Chileans get angry at your question, remember, there aren’t preguntas hueonas, only hueones que no preguntan.

Countries Named After Food