Whenever I see growth like that my plants inevitably die. Pull it and spare yourself some grief.
My thoughts on the cause is too much water and your seed probably had that mold on the shell when it was planted.

thanks for the thoughts grizz, you're right methinks.

you have any experience germinating peas? lol

Only by sticking them in the ground.
If you find an older posting by Charlielittle, you may get some insite. He posted some threads when he built his greenhouse and I'm pretty sure he was growing peas.

thanks for the info

That's definitely not a good sign. Make sure you clean that tray out with some bleach just to make sure you kill whatever that is.

If there isn't a concern of it spreading to other seeds you can just let it go and see if the seeds come up anyway. I tend to always give things the benefit of the doubt. But in this situation I'd start some more seeds just in case.