I can see what reason you have for thinking it should be "or" - that it seems like to be given the prize, you'd need outstanding achievement in both one of those sciences and peace.
However, I think the reason it is "and" is that it is simply a list of items. If you look at it is being just a list, and "for the promotion of world peace" is just the last item on that list, then "and" seems appropriate.
Perhaps the construction of the sentence would be less ambiguous if it were, "...which would award monetary prizes in the fields of physics, chemistry, physiology or medicine, and literature to those who undertook outstanding work in these areas, and for the promotion of world peace." Or something similar... However, the sentence is perfectly understandable as it is.
- For Teachers