Meets the Challenge: I would say very well, not only peppers but food still lifes would be to me a photography cliche!
Composition: Excellent, fairly good use of thirds, the stem kind of leads to the yellow one in the background. Like the variety of focus and "pose" of the other pepper. The black background works well against the intense colors of the pepper.
Technical quality: Good use of DOF, colors very natural and intense, sharpness in the foreground pepper is excellent. No post-processing issues noticeable. I, too, use black posterboard and hate the way it looks like grain, but fabric gives me a prob. too, so don't mind this in the photo. The lighting is great and adds a bit of mood to the photo.
Creativity: Good use of a rather common subject, especially with the lighting and DOF to add interest.
Conclusion: Very nice photo meeting the challenge well. Very well executed, I would have given it more like a seven, it's a shame so many nice photos end up in the "average" range when they are really above this (at least in MHO).
Feel free to email me with any questions or comments!