While 和 can mean 'with' or 'and' in this case I would say it denotes harmony, peace or mildness because there are no other characters to put together to form 'A and B'.
How can you say it's Japanese when it's obviously a Chinese word?! It's Chinese, and it means "harmony", only means "peace" when it's an abbreviated form, and the meaning of "and" is of modern usage. This word is never Japanese in the first place! Japanese altered the Chinese language and called it their own, by randomly taking out character parts. The Koreans brought the Chinese language to Japan in the 5th to 6th centuries. Koreans were studying the Buddhist texts and they have to learn Chinese to understand them. Without the Koreans & the Chinese written language, there would be NO modern Japanese language now!
But Japan invaded Korea & China! They ATE the hands that fed it. Japanese murdered millions of Chinese people in China starting in 1931, called the Nanjing Massacre! They even changed and distorted their textbooks to deny this Forgotten Holocaust!
We shall never forget 12-13-31[December 13, 1931: date of Nanjing Massacre or "The Rape of Nanjing" by Iris Chang] and 9-11-01[September 11, 2001: Terrorist attack in New York City by hijacked planes which took down the World Trade Center AKA Twin towers]