The damage on your pepper does look like slug damage.  Slugs have rasping mouthparts so leave smooth, holes, versus the piercing or chewing damage that you would see from insects and caterpillars.  You can see the hole looks like something rasped its way through the pepper skin into the interior.  There is also no frass, larvae or other signs of insect damage.  Slugs mostly eat leaves, but  will also eat berries, tomatoes, peppers, etc.  You can protect your plants by keeping leaves and fruit from the soil where it is readily available to slugs.  Copper foil, diatomaceous earth around your plants will make the area unpleasant to slugs.  Slugs like cool moist conditions, so slug damage should be less in the heat and dryness of summer.  Fall is the best time to control slugs as the weather cools and fall rains return, inviting them to emerge.  They also lay eggs in the fall, so if you can get the numbers down a little it will help alot next spring.  This article has additional suggestions for slug control,  How to Control Slugs in Your Garden  https://catalog.extension.oregonstate.edu/sites/catalog/files/project/pdf/em9155.pdf.

As long as you cut out the hole from the pepper and wash it well, it should be fine to eat.