For the scallops: Pat scallops dry with a paper towel, and sprinkle with salt and pepper. Press Sauté on the Instant Pot, Normal heat. Once HOT, drizzle in the olive oil. Add scallops to hot oil, and cook undisturbed until golden brown - about 2 minutes. Flip and cook until cooked through, 1 to 2 more minutes. Take out of the pot and set aside covered.
For the bell peppers: Press Sauté on Instant Pot, Normal heat. Once hot, drizzle in the olive oil and add the peppers. Season with salt and pepper.
Sauté the peppers, stirring and turning frequently, until the pepper skins start to blister and turn brown in spots.
Add the water, Italian seasoning, and salt and pepper to taste. Cover the pot with the glass lid accessory and cook for 1 minute so the peppers steam.
Stir once more and take out of the inner pot. Set aside.
Serve the dish by plating the scallops and bell peppers together. Add pesto and garnish with lemon zest and flat leaf parsley.