Place the sugar, 1 cup of the water and the peaches into a saucepan and cook until they come to a boil. Reduce the heat to a simmer (medium). Crush the peaches as you stir to dissolve the sugar. Once the sugar is dissolved, turn off the burner, cover, and allow the mixture to rest for about 30 minutes. Strain the syrup to remove the fruit pieces. Save the fruit pieces for smoothies. Add the syrup to the tea and refrigerate. Serve over ice.