When I was attending the class of Java, we are asked by the teacher. Why Java is called java? We don’t have answer to this question. Later the teacher explain us that:-

Once they were deciding on what to call it. They were at a coffee shop drinking coffee, and somehow they thought of naming it java, which is another word for coffee. As coffee from JAVA island, Indonesia is so famous that sometimes coffee is itself called Java in US slang, the name was a good option for a cool and attractive name.

Note: - Java was originally named Oak, but was changed to Java, in hopes of drawing more interest to the new language.

This article explains how Java got it’s name:
http://www.javaworld.com/jw-10-1996/jw-10-javaname.html

        

A source from wikipedia.org States that James Arthur Gosling:-

Born	May 19, 1955 (1955-05-19) (age 53) near Calgary, Alberta, Canada
Residence	United States
Nationality	Canada
Alma mater	Carnegie Mellon University, University of Calgary
Occupation	Computer Scientist
Employer	Sun Microsystems
Known for	Java programming language
Title	Chief Technology Officer, Client Software Group
Awards	Officer of the Order of Canada